Question
#6 Big Dawg Incorporated is trying to estimate its cost of equity capital. The firm believes its beta is 1.31. The current risk free rate
#6 Big Dawg Incorporated is trying to estimate its cost of equity capital. The firm believes its beta is 1.31. The current risk free rate in the economy is 1.64%, while the market portfolio risk premium is 7.00%. What is an estimate for the equity cost of capital?
Top of Form Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)
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International Financial Management
Authors: Geert Bekaert, Robert Hodrick
3rd edition
1107111820, 110711182X, 978-1107111820
