A portfolio manager is contemplating an investment in the Alpha Company and needs an equity risk...
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A portfolio manager is contemplating an investment in the Alpha Company and needs an equity risk premium estimate. The analyst recommending Alpha knows that the average yield to maturity on Alpha's outstanding bonds is 5.3 percent. Assuming a risk premium of 8.2 percent and a stock beta of 0.7, the cost of equity is closest to: Number % Round your answer to two decimals A portfolio manager is contemplating an investment in the Alpha Company and needs an equity risk premium estimate. The analyst recommending Alpha knows that the average yield to maturity on Alpha's outstanding bonds is 5.3 percent. Assuming a risk premium of 8.2 percent and a stock beta of 0.7, the cost of equity is closest to: Number % Round your answer to two decimals
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The cost of equity for Alpha Company can be estimated ... View the full answer
Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
Posted Date:
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