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? I know the correct answer is NOT 8.95%.
|
| 5.95% | |
|
| 8.50% | |
|
| 8.95% | |
|
| 11.50% | |
|
| 3.00% |
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Short Term Financial Management
Authors: John Zietlow, Matthew Hill, Terry Maness
5th Edition
1516512405, 9781516512409
