The Cost of Equity for Gruwom Corp

question 53

Multiple Choice

The cost of equity for Gruwom Corp. is 8.4%. If the return to the market is 10% and the risk-free rate is 5%, then the equity beta is:

• A) 0.48.
• B) 1.25.
• C) 0.68.
• D) 1.68.

---

Definitions:

Specialized Equipment

Tools or machinery designed for specific tasks or industries, often requiring particular skills to operate.

Visuals

Images, diagrams, or animations used to communicate ideas, data, or information more effectively.

Presentation Plan

A structured outline or strategy designed to organize and deliver information effectively during a presentation.

Design Plans

Design plans are detailed drawings or documents that outline the specifications, materials, and layout of a project, such as an architectural structure or a product.