Jones Industries

Question # 00004484 Posted By: paul911 Updated on: 12/03/2013 02:15 PM Due on: 12/05/2013
Subject Accounting Topic Accounting Tutorials:
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Debt: Jones Industries borrows $600,000 for 10 years with an annual payment of $100,000. What is the expected interest rate (cost of debt)?

Internal common stock: Jones Industries has a beta of 1.39. The risk-free rate as measured by the rate on short-term US Treasury bill is 3 percent, and the expected return on the overall market is 12 percent. Determine the expected rate of return on Jones’s stock (cost of equity).
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  1. Tutorial # 00004284 Posted By: mac123 Posted on: 12/03/2013 02:16 PM
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    The solution of Jones Industries...
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