13. Suppose the current long-term government bond yield is 2 percent and the estimated market risk premium is 5 percent. Fastest Companys beta is estimated to be 1.15. Using CAPM, estimate Fastest Companys cost of common equity. 14. How would your answer in question 13 change if the current long-term government bond yield was 3 percent and Fastest Companys beta was 1.5?

answer question number 14

Foerster, Stephen (2014-03-03). Financial Management: Concepts and Applications (Page 214). Prentice Hall. .