JaiLai Cos

question 122

Multiple Choice

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

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

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Definitions:

French And Raven

Refers to a social psychology theory identifying five bases of power: legitimate, reward, coercive, expert, and referent.

Referent Power

A form of influence based on the leader's or individual’s ability to cultivate loyalty and attraction, leading others to identify with them.

Legitimate Power

Power that is recognized as deserved or earned, often stemming from a person's position, role, or through the respect they command.

Person-Focused Leaders

Leaders who prioritize the development, well-being, and personal interests of their team members in their leadership approach.