Winston's Has a Beta of 1

question 4

Multiple Choice

Winston's has a beta of 1.08 and a cost of debt of 8 percent.The current risk-free rate is 3.2 percent and the market rate of return is 11.47 percent.What is the company's cost of equity capital?

• A)8.93 percent
• B)16.93 percent
• C)12.13 percent
• D)20.13 percent
• E)16.13 percent

---

Definitions:

Childhood Abuse

Childhood abuse encompasses physical, sexual, emotional abuse, or neglect of a child, leading to harmful effects on their health, development, and well-being.

Patient-controlled Analgesia

A method of pain management that allows patients to administer their own pain relief medication through a device.

Coping Strategies

Techniques or methods used to manage stress and deal with challenging situations in a healthy and productive manner.

Progressive Relaxation

A technique involving the tightening and then relaxing of various muscle groups to reduce physical and mental tension.