Over a certain period, large-company stocks had an average r…
Over a certain period, large-company stocks had an average return of 11.26 percent, the average risk-free rate was 2.49 percent, and small-company stocks averaged 20.20 percent. What was the risk premium of small-company stocks for this period?
Read DetailsOver a certain period, large-company stocks had an average r…
Over a certain period, large-company stocks had an average return of 12.99 percent, the average risk-free rate was 2.66 percent, and small-company stocks averaged 17.77 percent. What was the risk premium of small-company stocks for this period?
Read DetailsThe Two Dollar Store has a cost of equity of 18.1 percent, t…
The Two Dollar Store has a cost of equity of 18.1 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 0.79, what is the weighted average cost of capital?
Read DetailsToo Young, Inc., has a bond outstanding with a coupon rate o…
Too Young, Inc., has a bond outstanding with a coupon rate of 7.4 percent and semiannual payments. The bond currently sells for 98.4 percent of par and matures in 23 years. The par value is $1,000. What is the company’s pretax cost of debt?
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