What is capital rationing from the perspective of capital


1. Mayflower Inc. has some 7% semi-annual coupon bonds on the market selling at $1,012. The bonds have 9 years left to maturity. What is the effective annual yield on these bonds?

2. REQUIRED RATE OF RETURN Stock R has a beta of 2.1, Stock S has a beta of 0.6, the required return on an average stock is 9%, and the risk-free rate of return is 6%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places.

3. What is capital rationing from the perspective of capital budgeting?

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Financial Management: What is capital rationing from the perspective of capital
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