According to Value Line, Bestway Has a Beta of 1

question 50

Multiple Choice

According to Value Line, Bestway has a beta of 1.15.If 3-month Treasury bills currently yield 7.9 percent and the market risk premium is estimated to be 8.3 percent, what is Bestway's cost of equity capital?

• A)17.45%
• B)8.36%
• C)9.55%
• D)16.2%

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Definitions:

Discharged from Liability

The legal release of an individual or entity from any further responsibility for a debt or obligation.

Scientific Management

A management theory developed by Frederick Taylor, focusing on improving economic efficiency and labor productivity through systematic observation and measurement.

Deliberate Tasks

Activities consciously planned and executed to achieve a specific goal.

Overspecialized Work

work that is narrowly defined and requires a very specific set of skills or expertise, potentially leading to limitations in adaptability and opportunities.