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    Exam 11: Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach
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    Zonk Corp the Following Data Pertains to Zonk Corp
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Zonk Corp the Following Data Pertains to Zonk Corp

Question 21

Question 21

Multiple Choice

Zonk Corp. The following data pertains to Zonk Corp.,a manufacturer of ball bearings (dollar amounts in millions) :
Zonk Corp. The following data pertains to Zonk Corp.,a manufacturer of ball bearings (dollar amounts in millions) :   Assuming that riskless rate is 4.2% and the market premium is 6.2% calculate Zonk's cost of equity capital: A)  10.4% B)  7.69% C)  11.89% D)  2.0% Assuming that riskless rate is 4.2% and the market premium is 6.2% calculate Zonk's cost of equity capital:


A) 10.4%
B) 7.69%
C) 11.89%
D) 2.0%

Correct Answer:

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