Borrower must pay for debt capital-price of equity capital

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1. Bobbie purchased stock one year ago in your Brazil farming operation for $20,000 per share, and the stock has a current market value equal to $21,000. She knows she received a dividend payment equal to $300. What was her rate of return on her investment?

2. What do you call the price that a borrower must pay for debt capital, the price of equity capital? What are the four fundamentals factors that affect the cost of money in the economy? Define what each includes.

Reference no: EM131957408

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