Question
Crowded Markets Co. has an equity beta of 1.60. The risk-free rate of return is 2.5 percent, and the market risk premium is 8 percent.
Crowded Markets Co. has an equity beta of 1.60. The risk-free rate of return is 2.5 percent, and the market risk premium is 8 percent. What is the firms cost of equity?
A. 9.60 percent B. 11.30 percent C. 12.80 percent D. 14.10 percent E. 15.30 percent
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Make Money Teaching Online Courses
Authors: Andrew P.C.
1st Edition
1071003925, 978-1071003923
