Question
AAA Inc.'s stock has a beta of .95, the risk-free rate is 2.15%, and the market risk premium is 5.75%. What is AAA's required rate
AAA Inc.'s stock has a beta of .95, the risk-free rate is 2.15%, and the market risk premium is 5.75%. What is AAA's required rate of return? Do not round your intermediate calculations.
| a. | 6.28% | |
| b. | 7.61% | |
| c. | 6.46% | |
| d. | 5.95% | |
| e. | 9.63% |
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Fundamentals Of Corporate Finance
Authors: Stephen A Ross, Randolph W Westerfield, Bradford D Jordan
7th Edition
0073134295, 9780073134291
