CHAPTER 11 The Cost of Capital 505- What has been the highest prime interest rate since you were born?
- What is the present prime interest rate?
- Over the past 10 years, what was the lowest prime interest rate? What has
been the highest prime interest rate over the past 10 years?
Now go to Barra’s Web site http://www.barra.comand click on ResearchIndexes
and then on S&P/Barra U.S. Equity Indexes.
- What was the average annual 10-year return on large-cap stocks, as mea-
sured by growth in the S&P 500 (annualized 10-year return)? How does this
compare to your answers in question 5?
Remember to check the book’s Web site at
http://www.aw.com/gitman
for additional resources, including additional Web exercises.