Use the following information to answer the question(s)below. The risk-free rate of interest is 3% and the market risk premium is 5%.
-The cost of capital for the oil exploration division is closest to:
A)6.0%.
B)7.0%.
C)8.5%.
D)10.0%.

Question

Use the following information to answer the question(s)below.  The risk-free rate of interest is 3% and the market risk premium is 5%.
-The cost of capital for the oil exploration division is closest to:
A)6.0%. 
B)7.0%. 
C)8.5%. 
D)10.0%.

Quizplus · Accepted Answer

The Answer of Use the following information to answer the question(s)below.  The risk-free rate of interest is 3% and the market risk premium is 5%.
-The cost of capital for the oil exploration division is closest to:
A)6.0%. 
B)7.0%. 
C)8.5%. 
D)10.0%.

Use the Following Information to Answer the Question(s)below