Zonk Corp the Following Data Pertains to Zonk Corp

question 21

Multiple Choice

Zonk Corp. The following data pertains to Zonk Corp.,a manufacturer of ball bearings (dollar amounts in millions) :
Assuming that riskless rate is 4.2% and the market premium is 6.2% calculate Zonk's cost of equity capital:

• A) 10.4%
• B) 7.69%
• C) 11.89%
• D) 2.0%

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Definitions:

Divine

Pertaining to, of the nature of, or being a deity; often associated with qualities of perfection, omnipotence, and sacredness.

Sacred

Something that is considered holy, divine, or of immense spiritual significance, often revered and protected.

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A sociopsychological phenomenon where individuals in a group are less likely to take action or feel responsible for acting because the responsibility is perceived to be shared among all group members.

Bystander Effect

A phenomenon in which a person who witnesses another in need is less likely to help when there are other bystanders present to witness the event.