CJ Co Stock Has a Beta of 0

question 70

Multiple Choice

CJ Co. stock has a beta of 0.9, the current risk-free rate is 5.6, and the expected return on the market is 13 percent. What is CJ Co's cost of equity?

• A) 12.26 percent
• B) 17.30 percent
• C) 19.50 percent
• D) 22.34 percent

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Definitions:

Computer-aided Design (CAD)

The use of computer systems to aid in the creation, modification, analysis, or optimization of a design.

Manufacturing Equipment

Tools, machinery, and other durable equipment used in the process of transforming raw materials into finished products.

Physical Models

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Early sample, model, or release of a product built to test a concept or process, serving as a thing to be replicated or learned from.