Adams inc. has the following data: rrf = 5.00%; rpm = 6.00%; and b = 1.05. what is the firm's cost of common from reinvested earnings based on the capm?

Risk-free rate (Rf) = 5.00%

Beta (β) = 1.05

Risk premium = 6.00%                                        

Ke =  Rf +  β(Rm - Rf)  

Ke =  Rf +  β(Risk premium)  

Cost of common stock (Ke) = ?                                                                                                                                                                                                                  

Ke =5 + 1.05(6)      

Ke = 5 + 6.3

Ke = 11.30%                                                                                                                                

Explanation:

The firm's cost of common stock equals risk-free rate plus beta multiplied by risk premium.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi