An analyst compiled the following information to estimate the cost of equity capital for JI Inc. located
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Market risk premium 5.5%
Beta 1.3
10-year US Treasury bond yield 2.84%
The government-denominated 10-year Fiji dollar. bond yield 10.81%
Annualized SD of Fiji stock market 44%
Annualized SD of Fiji dollar-denominated bond 37%
JI Inc.'s sovereign yield spread and cost of capital are closest to:
R. 7.97% and 18.51% respectively.
B. 9.48% and 19.83% respectively.
C. 7.97% and 22.67% respectively.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: