For the past three years, the market portfolio has returned 10 percent. 10 percent, and 16...

  

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For the past three years, the market portfolio has returned 10 percent. 10 percent, and 16 percent. Let's assume 4% is the risk-free rate. Estimate the market risk premium. Second Energy Corporation reported total assets of PhP400, equity of PhP200, net income of PhP50, dividends of PhP10, and earnings retained in the period of PhP40 last year. How sustainable is the growth rate of the Second Energy Corp.? Smart Telecom Company's equity is worth PHP160 million and its debt is worth PHP90 million. Calculate the company's cost of capital if the required rate of return on equity is 15 percent and the required rate of return on debt is 5 percent. (Assume no taxes.) For the past three years, the market portfolio has returned 10 percent. 10 percent, and 16 percent. Let's assume 4% is the risk-free rate. Estimate the market risk premium. Second Energy Corporation reported total assets of PhP400, equity of PhP200, net income of PhP50, dividends of PhP10, and earnings retained in the period of PhP40 last year. How sustainable is the growth rate of the Second Energy Corp.? Smart Telecom Company's equity is worth PHP160 million and its debt is worth PHP90 million. Calculate the company's cost of capital if the required rate of return on equity is 15 percent and the required rate of return on debt is 5 percent. (Assume no taxes.)

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You have presented three separate questions relating to finance Lets address each one in turn 1 Market Risk Premium Estimation For the first question ... View the full answer