Kirchner Exports Has a Beta of 1

question 39

Multiple Choice

Kirchner Exports has a beta of 1.2. The risk free rate is 5% and the return on an average stock is 10.6%. Estimate Kirchner's cost of retained earnings.

• A)10.60%
• B)11.72%
• C)12.72%
• D)13.72%
• E)16.60%

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Definitions:

Societal Marketing Trend

A marketing approach that considers not only the company's requirements but also the consumers' needs and society's long-term interests.

Public Relations Exercise

Activities designed to manage and improve the public image and relationships of an organization with its stakeholders.

Transactional Marketing

A business strategy focusing on single, "point of sale" transactions, emphasizing maximizing the efficiency and volume of individual sales rather than developing a relationship with the buyer.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, emphasizing a balance between economic growth, environmental protection, and social equity.