BG's Cost of Equity Is 9

question 45

Multiple Choice

BG's cost of equity is 9.4 percent,the expected return on the market is 13.6 percent,and the risk-free rate is 3.8 percent.What is the firm's debt-equity ratio if its asset beta is .36? Assume there is no preferred stock.

• A).52
• B).59
• C).82
• D).77
• E).63

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Definitions:

Direct Labor Variances

The difference between the actual costs of direct labor and the standard or expected costs, used for budgeting and financial analysis.

Direct Labor Costs

The expenses related to the wages of employees who are directly involved in the production or manufacturing of goods. This is a specific type of direct cost.

Property, Plant, and Equipment

Long-term tangible assets used in a company's operations and not expected to be converted to cash in the short term.

Standard Cost

A preset cost for delivering a product or service under normal conditions, used as a benchmark for measuring performance.