In an efficient market, the cost of equity for a highly risky firm: In an efficient market, the cost of equity for a highly risky firm: decreases as the beta of the firm's stock increases. will be less than the market rate but higher than the risk-free rate. changes by 1 percent for every 1 percent change in the risk-free rate. must equal the market rate of return. increases in direct relation to the stock's systematic risk.

Suppose your rich uncle gave you $50,000, which you plan to use for graduate school. you will make the investment now, you expect to earn an annual return of 6%, and you will make 4 equal annual withdrawals, beginning 1 year from today. under these conditions, how large would each withdrawal be so there would be no funds remaining in the account after the 4th?

When is going to be why would you put money into saving account

After graduation, you plan to work for dynamo corporation for 12 years and then start your own business. you expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). the first deposit will be made a year from today. in addition, your grandfather just gave you a $32,500 graduation gift which you will deposit immediately (t = 0). if the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?