The author estimates that in January of 2012,Home Depot had a required return on equity of 6.8%.He explains this relatively ________ rate as a reflection of ________.

Question

Quizplus · Accepted Answer

The author estimates a relatively low required return on equity of 6.8% for Home Depot in January 2012. This is likely a reflection of the near all-time low long-term interest rates, which would lead to a lower required return on equity for Home Depot. Therefore, choice A is the best answer.

The Author Estimates That in January of 2012,Home Depot Had