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). Here are the details: Jones Total Assets $2,000,000 Long- & short-term debt $600,000 Common internal stock equity $400,000 New common stock equity $1,000,000 Total liabilities & equity $2,000,000

Internal common stock: Jones Industries has a beta of XXXXXXXXXXThe 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...

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). Here are the details:

Jones Total Assets	$2,000,000
Long- & short-term debt	$600,000
Common internal stock equity	$400,000
New common stock equity	$1,000,000
Total liabilities & equity	$2,000,000

May 26, 2022