Rainbow Mining Pty Ltd Is Concerned That Opening a New

question 29

Multiple Choice

Rainbow Mining Pty Ltd is concerned that opening a new credit line will affect its share price.Now the company has a risk return on its shares of 17.50%,determined by using a beta factor of 1.50.The risk free rate is 7%.What is the market risk premium based on the information given for Rainbow Mining?

• A)11.86%
• B)5.50%
• C)7.00%
• D)17.50%
• E)10.50%

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Vegan Eating Plan

A diet consisting exclusively of plant-based foods, avoiding all animal products for health, environmental, or ethical reasons.

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