E3.17. Implying the Market Risk Premium: Procter & Gamble (Easy) Analysts give Procter & Gamble, the consumer
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E3.17. Implying the Market Risk Premium: Procter & Gamble (Easy) Analysts give Procter & Gamble, the consumer products firm, an equity beta of 0.65. The risk-free rate is 4.0 percent. An analyst calculates an equity cost of capital for the firm of 7.9 percent using the capital asset pricing model (CAPM). What market risk premium is she assuming? Real World Connection See Minicases M9.1, M11.1, M12.1, M14.1, M15.1.
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Related Book For 
Financial Statement Analysis And Security Valuation
ISBN: 9780071267809
4th International Edition
Authors: Penman-Stephen-H, Steven Penman
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