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NEW QUESTION: 1
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. 16.17%
C. 11.36%
D. 8.82%
E. 14.7%
F. 17.6%
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%.
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B. Measure the backup window based on changes
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A conflict has developed among two project team members. The project manager reiterates the areas of agreement and avoids the areas of disagreement. Which of the following BEST describes this conflict resolution technique?
A. Compromising
B. Smoothing
C. Avoiding
D. Negotiating
Answer: B
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