Question
Booher Book Stores has a beta of 1.1. The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 7%.
Booher Book Stores has a beta of 1.1. The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 7%. The market risk premium is 6.5%, and the return on an average stock in the market last year was 15%.
What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places.
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Finance For Non Financial Managers
Authors: Gene Siciliano
1st Edition
0071413774, 978-0071413770
