You Are Trying to Determine the Cost of Equity for a Publicly

question 61

Multiple Choice

You are trying to determine the cost of equity for a publicly traded company.Which of the following is least useful?

• A)The 3-month Treasury bill rate.
• B)the risk premium on the market.
• C)the historical beta for the firm.
• D)the expected rate of return on a stock of similar risk.

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Definitions:

Clear about Responsibilities

A clear understanding and communication of duties, tasks, and obligations associated with a role or position.

Organized

Being arranged or structured in a systematic way, facilitating efficiency and order.

Salary Negotiable

A phrase indicating that the wage or compensation for a job position can be discussed and possibly adjusted based on the candidate's experience, skills, and the employer's budget.

Annual Salary

The total amount of money that an employee is set to earn over the course of a year for their labor or services.