Question
ABC Corp has the stock beta of 0.85. If the risk-free rate is 3% and the market risk premium is 10%, what is the cost
ABC Corp has the stock beta of 0.85. If the risk-free rate is 3% and the market risk premium is 10%, what is the cost of equity in the company?
| 5.95% | ||
| 8.50% | ||
| 8.95% | ||
| 11.50% | ||
| 3.00% |
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
5th edition
1285425758, 978-1305333468, 1305333462, 978-1285425757
