Solved

Suppose the Domestic U

Question 64

Multiple Choice

Suppose the domestic U.S.beta of IBM is 1.0,that is Suppose the domestic U.S.beta of IBM is 1.0,that is ,and that the expected return on the U.S.market portfolio is percent,and that the U.S.T-bill rate is 6 percent.If the world beta measure of IBM is then we can say A) That if the U.S.markets are fully integrated with the rest of the world, IBM's cost of equity capital would be 20% lower than if U.S.markets were segmented. B) That if the U.S.markets are fully integrated with the rest of the world, IBM's cost of equity capital would be 10% lower than if U.S.markets were segmented. C) That if the U.S.markets are fully integrated with the rest of the world, IBM's cost of equity capital would be one-third lower than if U.S.markets were segmented. D) None of the above ,and that the expected return on the U.S.market portfolio is Suppose the domestic U.S.beta of IBM is 1.0,that is ,and that the expected return on the U.S.market portfolio is percent,and that the U.S.T-bill rate is 6 percent.If the world beta measure of IBM is then we can say A) That if the U.S.markets are fully integrated with the rest of the world, IBM's cost of equity capital would be 20% lower than if U.S.markets were segmented. B) That if the U.S.markets are fully integrated with the rest of the world, IBM's cost of equity capital would be 10% lower than if U.S.markets were segmented. C) That if the U.S.markets are fully integrated with the rest of the world, IBM's cost of equity capital would be one-third lower than if U.S.markets were segmented. D) None of the above percent,and that the U.S.T-bill rate is 6 percent.If the world beta measure of IBM is Suppose the domestic U.S.beta of IBM is 1.0,that is ,and that the expected return on the U.S.market portfolio is percent,and that the U.S.T-bill rate is 6 percent.If the world beta measure of IBM is then we can say A) That if the U.S.markets are fully integrated with the rest of the world, IBM's cost of equity capital would be 20% lower than if U.S.markets were segmented. B) That if the U.S.markets are fully integrated with the rest of the world, IBM's cost of equity capital would be 10% lower than if U.S.markets were segmented. C) That if the U.S.markets are fully integrated with the rest of the world, IBM's cost of equity capital would be one-third lower than if U.S.markets were segmented. D) None of the above then we can say


A) That if the U.S.markets are fully integrated with the rest of the world, IBM's cost of equity capital would be 20% lower than if U.S.markets were segmented.
B) That if the U.S.markets are fully integrated with the rest of the world, IBM's cost of equity capital would be 10% lower than if U.S.markets were segmented.
C) That if the U.S.markets are fully integrated with the rest of the world, IBM's cost of equity capital would be one-third lower than if U.S.markets were segmented.
D) None of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q49: Micro Spinoffs, Inc., issued 20-year debt one

Q59: Find the debt-to-equity ratio for a firm

Q61: In the Capital Asset Pricing Model

Q62: Assume that XYZ Corporation is a leveraged

Q65: For most countries and most firms, the

Q66: Assume that XYZ Corporation is a levered

Q69: Suppose that the British stock market is

Q72: In the real world, does the cost

Q76: The following is an outline of certain

Q81: A firm may cross-list its share to
A)establish

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents