The Cost of Equity for Tangshan Mining Would Be Roughly

question 101

True/False

The cost of equity for Tangshan Mining would be roughly 10 percent if the expected return on U.S.Treasury Bills is 2 percent,the market risk premium is 6 percent,and the firm's beta is 1.33.

---

Definitions:

Utilitarianism

An ethical theory that suggests the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Uncertainty Avoidance

A cultural dimension that describes the extent to which people in a society are uncomfortable with ambiguity, uncertainty, and unstructured situations.

Role Perceptions

An individual’s view and understanding of the responsibilities, behaviors, and actions required by their role within an organizational context.

Individual Rights Principle

An ethical guideline that stresses the importance of respecting and protecting the rights of individuals in decision-making processes.