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NEW QUESTION: 1
HOTSPOT


Answer:
Explanation:

NEW QUESTION: 2
Which of the following statements regarding white-collar defendants is TRUE?
A. The lower the offenders' social status, the more likely they are to be imprisoned
B. They are more likely to be fined than to face prison terms as punishment
C. They are less likely to insist on a trial than other offenders
D. All of the above
Answer: B

NEW QUESTION: 3
Consider the following information:
30-day treasury rate (Risk Free rate) 6.4%
Company XYZ Bond yield 11.2%
Beta 1.1
Risk Premium 3.5%
Credit Rating B-
Marginal Tax Rate 40% Calculate Company XYZ's cost of retained earnings using the Bond-Yield-plus- Risk-Premium approach.
A. 17.6%
B. 8.82%
C. 15.2%
D. 11.36%
E. 14.7%
F. 16.17%
Answer: E
Explanation:
Explanation/Reference:
Explanation:
To estimate a firm's cost of retained earnings using the Bond-Yield-plus-Risk-Premium approach, simply take the company's bond yield and add the risk premium. In this case the cost of retained earnings
11.2% + 3.5% = 14.7%.