NO.PZ201512300100001503
问题如下：
Using Approach 3, LED Light’s estimated required rate of return is closest to:
选项：
A.8.5%
10.5%
12.8%
解释：
B is correct. The required return for LED Light using Approach 3 (bond yield plus risk premium approach) is calculated as follows:
Required rate of return = Expected long-term yield + Equity risk premium
Required rate of return = 0.04 + 0.065 = 0.105 = 10.5%
A is incorrect because the risk-free rate is added to the equity risk premium.
The premium should be relative to the company’s long-term debt, not the risk free rate.
Required rate of return on share i = 0.02 + 0.065 = 0.085 = 8.5%
C is incorrect because the beta has been incorrectly multiplied by the equity risk premium before being added to LED Light’s long-term bond yield:
Required rate of return on share i = 0.04 + (1.35 × 0.065) = 0.12775 ≈ 12.8%
本题为什么不用risk free rate + equity risk premium +/-one or more premium～
