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What is James cost of common equity

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Reference no: EM133023929

Questions -

Q1. Jacob Corporation's preferred stock pays an annual dividend of $9 per share and sells for $90 per share. What is its cost of preferred stock?

A. 7%

B. 9%

C. 8%

D. 10%

Q2. James Corporation's common equity beta is 1.1. The risk-free rate is 2% and the market risk premium is 8%. What is James' cost of common equity?

A. 9.7%

B. 10.8%

C. 8.6%

D. 11.9%

Reference no: EM133023929

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