The Real Risk-Free Rate Is 2%,the Expected Inflation Rate Is

question 136

Multiple Choice

The real risk-free rate is 2%,the expected inflation rate is 3.00%,the market risk premium is 4.70%,and Kohers Enterprises has a beta of 1.10.What is the required rate of return on Kohers' stock?

• A)9.43%
• B)9.67%
• C)9.92%
• D)10.17%

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Definitions:

Selling Inventory

Selling inventory consists of the process in which businesses sell their stocked goods or merchandise to customers.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets to generate sales revenue.

Net Sales

Net Sales is the amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and discounts.

Accounts Receivables

Represents money owed to a company by its customers for goods or services delivered but not yet paid for.