If the future return on common stock is 14% and the rate on T-bonds is – McqOptions

MCQOPTIONS

1.	If the future return on common stock is 14% and the rate on T-bonds is 5% then the current market risk premium will be
A.	0.19
B.	0.09
C.	9
D.	19
Answer» C. 9

Discussion

No Comment Found

Related MCQs

The capital budgeting decisions are analyzed with the help of weighted average and for this purpose
The rate of required return by debt holders is used for the estimation of
In the pure play method, a company can calculate its own cost of capital with the help of averaging an
The cost of equity which is raised by reinvesting earnings internally must be higher than the
The type of variability in which a project contributes in the return of company is considered as
The risk free rate is subtracted from expected market return is considered as
A formula of after-tax component cost of debt is
The dividend per share is $15 and sell it for $120 and floatation cost is $3.0 then the component cost of preferred stock will be
If the future return on common stock is 19% and the rate on T-bonds is 11% then the current market risk premium will be
The special situation in which large projects are financed by with and securities claims on project's cash flow is classified as