Question
Amazon has a beta of 0.9. The risk-free rate is 2.4% and the expected return on the S&P500 is 7%. What is Amazon's cost of
Amazon has a beta of 0.9. The risk-free rate is 2.4% and the expected return on the S&P500 is 7%.
What is Amazon's cost of equity from retained earnings?
Now assume that the expected market risk premium is 7%. What is Amazon's cost of equity from retained earnings, according to the CAPM?
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Commodity Option Pricing A Practitioner's Guide
Authors: Iain J. Clark
1st Edition
1119944511, 978-1119944515
