# Determine the expected return of a company's stock given a risk free rate of 7%, an...

###### Question:

Determine the expected return of a company's stock given a risk free rate of 7%, an expected market return of 12%, a market risk premium of 5% and a company Beta of 1.5. O 0.115 O 0.125 O 0.135 O 0.145
Which of the following is NOT a cost to the firm of increasing debt financing? the cost of common equity will decrease. Ostockholders will demand a higher return. investors will demand a higher interest rate on debt. the risk to common stockholders increases.

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