The common stock of Shaky Building Supply has a beta that is 22 percent greater than the overall market beta. Currently, the market risk premium is 9.56 percent while the U. S. Treasury bill is yielding 3.3 percent. What is the cost of equity for this firm

How can a poor housing market put home buyers in a financially unstable position? a. changing property values means it’s easier to find homes with low rental costs. b. when the home value decreases, property taxes and insurance costs increase. c. houses are valued lower than their purchase prices, so the home equity decreases. d. home buyers lose all tax benefits and tax incentives when the housing market goes down. e. mortgage payments can increase even though the home value decreases.

Suppose the price of a complement to lcd televisions rises. what effect will this have on the market equilibrium for lcd tvs?

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars