The Common Stock of Mill Stones Has a Beta That

question 69

Multiple Choice

The common stock of Mill Stones has a beta that is 8 percent greater than the overall market beta.Currently,the market risk premium is 7.65 percent while the U.S.Treasury bill is yielding 4.3 percent.What is the cost of equity for this firm?

• A)12.76 percent
• B)11.96 percent
• C)12.91 percent
• D)12.56 percent
• E)11.85 percent

---

Definitions:

Babysitting Assistance

A service or support system provided to help take care of children temporarily in the absence of their primary caregivers.

Church Community

A social and religious group of people who share the same faith and gather in a church for worship.

Hopelessness

A feeling or state of despair in which an individual perceives little or no possibility of positive outcomes in a situation.

Disease Progression

The course a disease takes over time as it develops or worsens.