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QUESTION 20 Alphabet Inc. (formerly Google) has a market beta of 0.94, if the market increases by 1.7% on a given day we woul
QUESTION 21 The average borrowing rate for interest bearing debt is calculated as: Interest Expense divided by Average Liabil
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Answer #1

20. Beta = .94

When market increases by 1.7%

Stock price = .94*1.7% = 1.598 = 1.60%

Hence correct solution is the last Orion I.e increase by 1.60%

21. The correct option is (C).

22. The correct solution is 'cost of equity capital' which is second option.

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