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.

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Definitions:

Financial Measure

A numeric representation of a company's financial health or performance, such as profit margins, return on investment, or earnings per share.

Balanced Scorecard

A strategic planning and management system that uses a mix of financial and non-financial measures to evaluate organizational performance.

Decision Management

Those aspects of the decision process where managers either initiate or implement decisions.