Question
ABNB Share Price $239 Shares Outstanding 100,000,000 Market Cap 23,900,000,000 Risk-free rate is 3% Market risk premium is 4% Corp tax rate is 24% The
| ABNB | |
|---|---|
| Share Price | $239 |
| Shares Outstanding | 100,000,000 |
| Market Cap | 23,900,000,000 |
Risk-free rate is 3%
Market risk premium is 4%
Corp tax rate is 24%
The company's stock beta: 1.28
What is the cost of equity for Airbnb? Use the SML Approach. Give the answer as a percentage, accurate to one decimal place.
Step by Step Solution
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Step: 1
The cost of equity can be determined using the Security Market Line SML approach which is a con...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
