[单选题]

Derek Ramsey is an analyst with Bullseye Corporation, a major U.S.-based discount retailer. Bullseye is considering opening new stores in Brazil and wants to estimate its cost of equity capital for this investment. Ramsey has found that:
·The yield on a Brazilian government 10-year U.S. dollar-denominated bond is 7.2%.
·A 10-year U.S. Treasury bond has a yield of 4.9%.
·The annualized standard deviation of the Sao Paulo Bores stock index in the most recent year is 24%.
·The annualized standard deviation of Brazil's U.S. dollar-denominated 10-year government bond over the last year was 18%.
·The appropriate beta to use for the project is 13.
·The market risk premium is 6%.
·The risk-flee interest rate is 4.5%.
Which of the following choices is closest to the appropriate country risk premium for Brazil and the cost of equity that Ramsey should use in his analysis?
Country risk premium for Brazil   Cost of equity for Project

A.2.5%            15.6%

B.2.5%            16.3%

C.3.1%            16.3%

参考答案与解析:

相关试题

Hindberg is a car retailer. On 1 April 2

[单选题]H.indberg is a car retailer. On 1 April 2014, Hindberg sold a car to Latterly on the following terms:The selling price of the car was $25,300. Latterly paid $12,650 (half of the cost) on 1 April 2014 and would pay the remaining $12,650 on 31 March 20

  • 查看答案
  • An analyst gathered the following information from Leneor Corporation's 2009 financial statemen

    [单选题]An analyst gathered the following information from Leneor Corporation's 200

  • 查看答案
  • An analyst is investigating an investment project of Hellet Corporation. The investment project with

    [单选题]An analyst is investigating an investment project of Hellet Corporation. Th

  • 查看答案
  • An analyst checked the financial information of a profitable company named York Corporation. The com

    [单选题]An analyst checked the financial information of a profitable company named

  • 查看答案
  • The 95% confidence interval of the sample mean of employee age for a major corporation is 19 years t

    [单选题]The 95% confidence interval of the sample mean of employee age for a major

  • 查看答案
  • An analyst is evaluating an investment in an apartment complex based on the following annual data:&l

    [单选题]An analyst is evaluating an investment in an apartment complex based on the

  • 查看答案
  • An analyst compared the performance of a hedge fund index with the performance of a major stock inde

    [单选题]An analyst compared the performance of a hedge fund index with the performa

  • 查看答案
  • The dollar discount on a U.S. Treasury bill with 91 days until maturity is $2,100. The face value of

    [单选题]The dollar discount on a U.S. Treasury bill with 91 days until maturity is

  • 查看答案
  • For a 90-day U.S. Treasury bill selling at a discount, which of the following methods most likely re

    [单选题]For a 90-day U.S. Treasury bill selling at a discount, which of the followi

  • 查看答案
  • An analyst does research about ratio impact according to the dividend discount model. With respect t

    [单选题]An analyst does research about ratio impact according to the dividend disco

  • 查看答案
  • Derek Ramsey is an analyst with Bullseye Corporation, a major U.S.-based discount retailer. Bullseye