Question: Please help I am taking a test now. Need answers asap! Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost
Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: r_RF = 4.10%; RP_M = 5.25%; and b = 1.65. Based on the CAPM approach, what is the cost of equity from retained earnings? 12.76% 11.36% 13.91% 12.25% 13.53% LaPango Inc. estimates that its average-risk projects have a WACC of 10%, its below-average risk projects have a WACC of 8%, and its above-average risk projects have a WACC of 12%. Which of the following projects (A, B, and C) should the company accept? None of the projects should be accepted. All of the projects should be accepted. Project B, which is of below-average risk and has a return of 8.5%. Project A, which is of average risk and has a return of 9%. Project C, which is of above-average risk and has a return of 11%
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