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Calculate Ideko's unlevered cost of capital when Ideko's unlevered beta is 1.24, the risk-free rate of return is 5.41 percent and the expected market risk
Calculate Ideko's unlevered cost of capital when Ideko's unlevered beta is 1.24, the risk-free rate of return is 5.41 percent and the expected market risk premium is 6.39 percent. As a reference, the equity betas with confidence intervals along with capital structure and unlevered beta estimates for comparable firms are shown here,
The estimate of Ideko's unlevered cost of capital is ______ %.
(Round to two decimal places.)
Data Table lick on the Icon located on the top-right corner of the data table below in order to copy its contents o a Equity Betas with Confidence Intervals for Comparable Firms Monthly Returns 10-Day Returns Firm Oakley Luxottica Nike Beta 1.99 0.56 0.48 95% C.1 1.20 to 2.80 0.00 to 1.10 -0.10 to 1.00 Beta 1.37 0.86 0.69 95% C.1 0.90 to 1.90 0.50 to 1.20 0.40 to 1.00 Capital Structure and Unlevered Beta Estimates for Comparable Firms Firm Oakley Luxottica Nike E D 1.00 0.83 1.05 E D 0.00 0.17 - 0.05 PE 1.50 0.75 0.60 Po 0.00 0.00 0.00 1.50 0.62 0.63 Print DoneStep by Step Solution
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