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Question 17 (1 point) Widget Works has a cost of equity of 17.1 percent. The market risk premium is 9.2 percent and the
Posted: Fri Jul 01, 2022 7:41 am
by answerhappygod
- Question 17 1 Point Widget Works Has A Cost Of Equity Of 17 1 Percent The Market Risk Premium Is 9 2 Percent And The 1 (40.2 KiB) Viewed 19 times
Question 17 (1 point) Widget Works has a cost of equity of 17.1 percent. The market risk premium is 9.2 percent and the risk-free rate is 3.3 percent. The
company is acquiring a competitor, which will increase the
company's beta to 1.7. What effect, if any, will the acquisition have on the firm's cost of equity capital? Decrease of 2.62 percent Increase of 2.62 percent Increase of 1.84 percent No effect Decrease of 1.84 percent