Jacque Ewing Drilling, Inc. has a beta of 1.3. If the risk-free rate of return is 8 percent and the expected return on the market is 12 percent, what is the firm's after-tax cost of equity capital if the firm's marginal tax rate is 0 percent

The firm after tax cost of equity would be 13.2%

Explanation:

The computation of the firm after tax cost of equity capital is shown below

As we know that

Required rate of return = Risk free rate of return + Beta × (market rate of return - risk free rate of return)

= 8% + 1.3 × (12% - 8%)

= 8% + 1.3 × 4%

= 8% + 5.2%

= 13.2%

Since the marginal tax rate is 0%

So, the firm after tax cost of equity would be 13.2%

answer; sensory adaptation;

-the personal ownership of property

-the influence of consumer demand

explanation:

the command economy prohibits the personal ownership of property.

basically, command economy is defined as the system where a nation’s government is the one that makes all the decisions when it comes to its economy. the government is the one who controls the production of goods and services and regulates the prices and salaries.

therefore, since that the government is the authority, then all kinds of personal ownership of property is prohibited by them.