FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com | Page 7

You have been hired as a consultant by Feludi Inc.'s CFO, who
wants you to help her estimate the cost of capital. You have been
provided with the following data: rRF = 4.10%; RPM = 5.25%; and b =
1.30. Based on the CAPM approach, what is the cost of common from
reinvested earnings?
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Question 13
Which of the following statements is CORRECT?
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Question 14
Which of the following statements is CORRECT?
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Question 15
Projects C and D both have normal cash flows and are mutually
exclusive. Project C has a higher NPV if the WACC is less than 12%,
whereas Project D has a higher NPV if the WACC exceeds 12%. Which
of the following statements is CORRECT?
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Question 16