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A firm is considering an investment of stock from TB Customs, Inc., which has a beta of 0.1. Treasury Bills are currently yielding 3.9% and
A firm is considering an investment of stock from TB Customs, Inc., which has a beta of 0.1. Treasury Bills are currently yielding 3.9% and the expected market return is 9.8%. Calculate the cost of capital for TB Customs according to the CAPM.
State your answer with two decimals and do NOT enter the % sign.
Example: If the answer is 25.92%, enter 25.92. Do NOT enter .02592
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