The stock of canadian ski wear is currently trading at $45 a share and the equity beta of the company is estimated to be 1.3. the company is expected to pay a dividend of $1.50 a share next year, and this dividend is expected to grow at a rate of 4% per year. the rate on the 10-year u. s. treasury bond is 4% and you estimate the market risk premium to be 5%. using the capm, what is the company’s cost of equity?

Suppose a new "payment technology" allows individuals to make payments using u.s. treasury bonds (i.e., u.s. treasury bonds are immediately cashed when needed to make a payment and that balance is transferred to the payee). how do you think this payment technology would affect the transactions component of the demand for money? a. this would lead to a decreased need to hold cash for transactions; however, the transactions demand for money would remain unchanged. b. this would lead to a decreased need to hold cash for transactions, thus the transactions demand for money would decrease. c. this would lead to an increased need to hold cash for transactions, thus the transactions demand for money would increase. d. this technology would not change the transactions component of the demand for money.