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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. They are less likely to insist on a trial than other offenders
B. They are more likely to be fined than to face prison terms as punishment
C. All of the above
D. The lower the offenders' social status, the more likely they are to be imprisoned
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. 15.2%
B. 14.7%
C. 17.6%
D. 11.36%
E. 16.17%
F. 8.82%
Answer: B
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%.