The Risk Free Rate of Return Is 3% and the Expected

question 37

Multiple Choice

The risk free rate of return is 3% and the expected return on the market portfolio is 14%.Starship Enterprises has a beta of 2.0 and a standard deviation of returns of 26%.Starship's marginal tax rate is 35%.Analysts expect Starship's net income to grow by 12% per year for the next 5 years.Using the capital asset pricing model,what is Starship Enterprises' cost of retained earnings?

• A) 18.6%
• B) 21.2%
• C) 22.8%
• D) 25.0%

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Definitions:

Human Resource Sources

Various origins from which organizations can recruit or acquire human capital, such as internal recruitment, job portals, and educational institutions.

Internal Workforce

The employees who are currently working within an organization, as opposed to temporary or external staff.

Vacancy Model

A framework for analyzing the number of vacant positions within an organization and the strategies for filling them.

Internal Hiring

The practice of filling job vacancies with current employees rather than bringing in external candidates.