Over a certain period, large-company stocks had an average r…
Over a certain period, large-company stocks had an average return of 8.51 percent, the average risk-free rate was 3.32 percent, and small-company stocks averaged 19.95 percent. What was the risk premium of small-company stocks for this period?
Read DetailsReview the below picture of the cube and the red letters ass…
Review the below picture of the cube and the red letters associated with the slice of the cube, either vertical or horizontal. A company is current under investigation for an FCPA violation because an employee was accused of bribing a foreign official to maintain a big sales contract. Which slice of the cube likely has a breakdown/is not being fully addressed by the company?
Read DetailsLast year, you purchased a stock at a price of $79.50 a shar…
Last year, you purchased a stock at a price of $79.50 a share. Over the course of the year, you received $1.76 per share in dividends and inflation averaged 2.67 percent. Today, you sold your shares for $98.32 a share. What is your approximate real rate of return on this investment?
Read DetailsThe Two Dollar Store has a cost of equity of 13.1 percent, t…
The Two Dollar Store has a cost of equity of 13.1 percent, the yield to maturity on the company’s bonds is 5.8 percent, and the tax rate is 21 percent. If the company’s debt–equity ratio is 0.48, what is the weighted average cost of capital?
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