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Home Q & A Board Science-Related Homework Help Forensic Science
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PorterOlaph PorterOlaph
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6 years ago
The management of Quills and Ink want to calculate the required rate of return (ROR) of the company. The following information is available:

Risk free rate       5.30%
Equity risk premium      4.24%
Firm size premium      2.16%
Industry risk premium       6.50%
Specific company risk premium     3.00%

Calculate the ROR of Quills and Ink.
A) 16.96%
B) 21.20%
C) 18.20%
D) 19.40%
Textbook 
Forensic Accounting

Forensic Accounting


Edition: 1st
Authors:
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IrishLadyIrishLady
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6 years ago
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More solutions for this book are available here
B
Explanation:  B) Required rate of return = Risk-free rate + Equity risk premium + Firm size premium + Industry risk premium + Specific company risk premium
ROR = 5.30% + 4.24% + 2.16% + 6.50% + 3.00%
ROR = 21.20%
1

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PorterOlaph Author
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#2
5 years ago
Very smart person right there. Thanks for helping me ace my physics class
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