1) Worth While Entertainment has an expected return of 11.90%, a beta of 1.15, and the expected...
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1) Worth While Entertainment has an expected return of 11.90%, a beta of 1.15, and the expected return on the market is 10.90%. What must the risk-free rate be? Show calculations.
2) Sixth Fourth Bank has an issue of perpetual preferred stock with a $5.50 stated dividend that has a market price of $97 per share. What is the bank’s cost of preferred stock if the tax rate is 30%? Show calculations.
Related Book For
Financial management theory and practice
ISBN: 978-1439078099
13th edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
Posted Date: