Calculate the Required Rate of Return for Mars Inc

question 56

Multiple Choice

Calculate the required rate of return for Mars Inc.'s stock. The Mars's beta is 1.2, the rate on a T-bill is 4 percent, the rate on a long-term T-bond is 6 percent, the expected return on the market is 11.5 percent, the market has averaged a 14 percent annual return over the last six years, and Mars has averaged a 14.4 return over the last six years.

• A) 12.6%
• B) 13.2%
• C) 14.0%
• D) 15.6%
• E) 16.2%

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Definitions:

Hidden Objection

An objection that disguises the actual objection with either silence or triviality.

Salesperson's Action

Refers to the steps or initiatives taken by a salesperson to promote and sell a product or service, including communication, presentation, and negotiation.

Trial Close

A trial close is a sales technique in which the salesperson asks a potential customer a question or series of questions to gauge the customer's readiness to buy, before making the actual close.

Psychological Objection

A hidden objection based on the prospect’s attitudes.