NARRBEGIN: Never-Crash Airlines Never-Crash Airline

question 43

Multiple Choice

NARRBEGIN: Never-crash Airlines
Never-crash Airline
Never-crash Airline has a capital structure that consists of 30% debt and 70% equity. The company’s cost of debt is 7%. The company has a beta of 1.9. The risk free rate equals 4.5% and the expected return on the market portfolio is 15%.
NARREND

-What is the Never-crash Airline's cost of equity?

• A) 33.00%
• B) 7.05%
• C) 24.45%
• D) 28.50%

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Definitions:

Broader Objectives

Goals or aims that are more inclusive and wide-ranging, extending beyond specific, narrow targets to encompass wider organizational or societal aims.

Long-range Objectives

Goals set by an organization to be achieved in the long term, often spanning over several years, focusing on the desired future position of the company.

Priority

The fact or condition of being regarded or treated as more important than others.

A-B-C Priority System

A method of categorizing tasks or items based on their importance or urgency, with 'A' being most critical, 'B' being important but not urgent, and 'C' being less important.