If the future return on common stock is 14% and the rate on T-bonds is 5% then t

Question

If the future return on common stock is 14% and the rate on T-bonds is 5% then the current market risk premium will be

Options:

A . 0.19

B . 0.09

C . 9

D . 19

Answer: Option B
Answer: (b).0.09

Was this answer helpful ?

Next Question

More Questions on This Topic :

Question 1. The retention ratio is 0.60 and the return on equity is 15.5% then the growth retention model would be....

Question 2. An attempt to make correction by adjusting historical beta to make it closer to an average beta is classified as....

Question 3. The method uses for an estimation of cost of equity is classified as....

Question 4. The method in which company finds other companies considered in same line of business to evaluate divisions is classifie....same line of business to evaluate divisions is classified as

Question 5. The bond risk premium is added in to bond yield to calculate....

Question 6. For each component of capital, a required rate of return is considered as....

Question 7. The stock selling price is $35, expected dividend is $5 and expected growth rate is 8% then cost of common stock would b....rate is 8% then cost of common stock would be

Question 8. The preferred dividend is divided by preferred stock price multiply by (1-floatation cost) is used to calculate....

Question 9. If the payout ratio is 0.45 then the retention ratio will be....

Question 10. The retention ratio is 0.55 and the return on equity is 12.5% then the growth retention model would be....

Chapter 1 - GLOBAL STEEL SCENARIO & INDIAN STEEL INDUSTRY Part 1 : (13-04-2024) INDUSTRY AND COMPANY AWARENESS (ICA)

Direction Sense Test Part 1 Reasoning (Hindi)

Chapter 1 - RMHP / OHP / OB & BP Part 1 : (14-02-2024) GPOE

Cube & Cuboid Part 1 Reasoning (Hindi)

Data Interpretation (DI) Basic Concept Reasoning (Hindi)

Counting Figures Part 1 Counting Of Straight Lines Reasoning (Hindi)

Sail E0 free webinar Webinars

Real Numbers Part 7 Class 10 Maths

Real Numbers Part 1 Class 10 Maths

Polynomials Part 1 Class 10 Maths

Pie Chart - Test Paper 1 Data Interpretation Reasoning & DI

Tabulation - Test Paper 2 Data Interpretation Reasoning & DI

Test Paper 1 Direction Sense Test Reasoning & DI

ICA , RDIC,GFM Free Modal Test Paper - Non - Technical Branch Old Syllabus 2022 - SAIL Junior Officer E0

GFM Combined 1 Free Revision Test SAIL JO E-0