Booher Book Stores has a beta of 0.5. The yield on a 3-month T-bill is 4.5% and the yield on a 10-year T-bond is 6.5%.
Booher Book Stores has a beta of 0.5. The yield on a 3-month T-bill is 4.5% and the yield on a 10-year T-bond is 6.5%. The market risk premium is 5%, and the return on an average stock in the market last year was 11.5%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places. ______ %
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Authors: Paula H. Song, Kristin L. Reiter
4th Edition
1640553223, 978-1640553224
