Question
Cost of Equity: CAPM Booher Book Stores has a beta of 0.8. The yield on a 3-month T-bill is 5% and the yield on a
Cost of Equity: CAPM
Booher Book Stores has a beta of 0.8. The yield on a 3-month T-bill is 5% and the yield on a 10-year T-bond is 6%. The market risk premium is 4.5%, and the return on an average stock in the market last year was 13%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places.
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Risk Management For Forex Trading Beginners Tips For Managing Risk In Forex Trading For Beginners
Authors: J.r. Bosanko
1st Edition
1542317657, 978-1542317658
