JaiLai Cos

question 88

Multiple Choice

JaiLai Cos. stock has a beta of 1.7, the current risk-free rate is 6.2%, and the expected return on the market is 11%. What is JaiLai's cost of equity?

• A) 13.81%
• B) 15.19%
• C) 13.41%
• D) 14.36%

---

Definitions:

Modified Contract

An agreement where the original terms have been altered or amended by the parties involved, following mutual consent.

Consideration

The value (such as money, a promise, or a service) that is given by both parties in a contract making the agreement legally binding.

Personal Property

Movable assets owned by an individual or entity, as opposed to real estate or land.

Article 2A

A section within the Uniform Commercial Code that covers the law of leases of personal property.