The Common Stock of Shaky Building Supply Has a Beta

question 25

Multiple Choice

The common stock of Shaky Building Supply has a beta that is 22 percent greater than the overall market beta.Currently, the market risk premium is 9.56 percent while the U.S.Treasury bill is yielding 3.3 percent.What is the cost of equity for this firm?

• A)15.16 percent
• B)14.36 percent
• C)15.31 percent
• D)14.96 percent
• E)14.25 percent

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Definitions:

Social Change

The transformation over time of the institutions, culture, and structure of society.

Exponential Growth

A process of increase where the quantity grows at a rate proportional to its current value, leading to rapid escalation over time, commonly used in reference to populations, investments, and infectious disease spread.

Unilinear Evolutionary Theory

The assertion that there is only one path through which an organism or society can evolve.

Universal Evolutionary Theory

A concept in sociology that attempts to explain the development of societies from simple to complex forms over time through a process of evolution.