The cost of equity for a firm is 20%. If the real interest rate is 5%, the inflation premium is 3%, and the market risk premium is 2%, what is the investment risk premium for the firm?
A) 10%
B) 12%
C) 13%
D) 15%
Correct Answer:
Verified
Q69: Venture investors generally use which of the
Q70: Estimate a firm's economic value added (EVA)
Q71: The difference between average annual returns on
Q72: Which of the following types of "premiums"
Q73: Venture capital holding period returns (all stages)for
Q74: What has been the approximate long-run (90
Q75: Which of the following types of financing
Q76: Calculate the after-tax WACC based on the
Q77: Find a venture's economic value added (EVA)
Q79: Calculate the weighted average cost of capital
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents