Question
1. In December 1995, Boise Cascades stock had a beta of 0.95. The treasury bill rate at the time was 5.8% and the treasury bond
1. In December 1995, Boise Cascades stock had a beta of 0.95. The treasury bill rate at the time was 5.8% and the treasury bond rate was 6.4%.
a. Estimate the expected return on the stock for a short term investor in the company.
b. Estimate the expected return on the stock for a long term investor in the company.
c. Estimate the cost of equity for the company.
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American Public School Finance
Authors: William A. Owings, Leslie S. Kaplan
3rd Edition
113849996X, 978-1138499966
