L9 CorpHas a Beta of 1

question 80

Multiple Choice

L9 Corp.has a beta of 1.34 and an expected return of 21%.If the market return is 17%,what is the return you would expect to get from a T-Bill?

• A) 5.24%
• B) 8.64%
• C) 3.41%
• D) 2.16%
• E) 4.50%

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Definitions:

Inventory Value

The total cost or market value of all the goods held by a company intended for sale or used in production.

Prime Costs

The combined costs of direct materials and direct labor that are directly involved in the production of a product.

Factory Overhead

Costs related to the manufacturing process that are not directly attributable to the product being manufactured, such as utilities and maintenance of equipment.

Balance Sheet

A financial statement that presents a company's financial position at a specific point in time, including assets, liabilities, and shareholders' equity.