Question: AaBbCcD AaBbCcd AaBbCc AaBbCc AaBbC AaBbCcD Aa T Header 3 Heading 2 1 Normal T No Spac. Heading 1 Heading 3 Title ph Styles 13.
AaBbCcD AaBbCcd AaBbCc AaBbCc AaBbC AaBbCcD Aa T Header 3 Heading 2 1 Normal T No Spac. Heading 1 Heading 3 Title ph Styles 13. Oakdale Furniture, Inc. has a beta coefficient of 0.7 and a required rate of return of 15 percent. The market risk premium is currently 5 percent. We expect the inflation premium to increase 2 percentage points and Oakdale to acquire assets which will increase its beta by 50 percent. (a) What was the old risk free rate and the new expected risk free rate? (1 pt) (b) What is Oakdale's new beta? (1 pt) (c) What is Oakdale's new required rate of return? (1 pt) 14. FincCo, has the following information: 1) Price per unit sold is $20 and 1 million units are expected to be sold. 2) Cost of goods sold per unit is $15. 3) Rate on debt is 10%. 4) Tax rate is 40%. 5) Dividend per share is S2.50
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