JaiLai Cos

question 122

Multiple Choice

JaiLai Cos. stock has a beta of 1.7, the current risk-free rate is 6.2 percent, and the expected return on the market is 11 percent. What is JaiLai's cost of equity?

• A) 13.81 percent
• B) 15.19 percent
• C) 13.41 percent
• D) 14.36 percent

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Definitions:

Wagner Act

A foundational U.S. law enacted in 1935 to protect workers' rights to organize and to promote collective bargaining.

Secondary Boycott

A form of protest where a group (usually a labor union) refuses to do business with or work for other companies that are associated with the primary target of a labor dispute, but not directly involved in it.

Taft-Hartley Act

A 1947 United States federal law that restricts the activities and power of labor unions.

Landrum-Griffin Act

A 1959 U.S. federal law formally known as the Labor-Management Reporting and Disclosure Act, aimed at regulating labor unions' internal affairs and their officials' dealings with employers.