{"id":216768,"date":"2018-09-15T21:42:10","date_gmt":"2018-09-15T21:42:10","guid":{"rendered":"http:\/\/localhost\/wordpress\/index.php\/2018\/09\/15\/fin-515-week-3-quiz\/"},"modified":"2018-10-24T08:47:01","modified_gmt":"2018-10-24T08:47:01","slug":"fin-515-week-3-quiz","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/fin-515-week-3-quiz\/","title":{"rendered":"FIN 515 Week 3 Quiz"},"content":{"rendered":"<p>Company A has a beta of 2.77. Company B has a beta of .73. Company C has a beta of .90. The risk free rate is 6% and the market risk premium is 4%.\tWhat is the expected return of investing in Company B?\u00a0\t\tstock portfolio consists of only two stocks. You have $15,000 in Company A and $25,000 in Company B.\tCompany A has an actual return of -8% and Company B has a return of 12%. What is the return on your portfolio?\u00a0\t\tA company has a capital structure of 40% debt and 60% equity. The YTM on the company&#8217;s bonds is 9%, and the company&#8217;s effective tax rate is 40%.\tThe CFO has estimated the company&#8217;s WACC to be 9.96%. What is the company&#8217;s cost of equity?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Company A has a beta of 2.77. Company B has a beta of .73. Company C has a beta of .90. The risk free rate is 6% and the market risk premium is 4%. What is the expected return of <a href=\"https:\/\/www.benedictsol.com\/blogs\/fin-515-week-3-quiz\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-216768","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216768","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=216768"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216768\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=216768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=216768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=216768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}