Question
A company in Thailand has a beta of 1.2 and a lambda of 0.7. The U.S. risk-free rate is 2.1%, the inflation rate is 6.2%,
A company in Thailand has a beta of 1.2 and a lambda of 0.7. The U.S. risk-free rate is 2.1%, the inflation rate is 6.2%, the equity risk premium is 5.33%. Thailand has a country risk premium of 5.66% and an inflation rate of 4.1%. Whats the firms cost of equity in Thai baht?
Between 5% and 7%
Between 7% and 9%
Between 9% and 11%
Above 11%
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
4th Edition
0077262379, 978-0077262372
