Question
Diddy Corp. stock has a beta of 1.1, the current risk-free rate is 5 percent, and the expected return on the market is 12.50 percent.
Diddy Corp. stock has a beta of 1.1, the current risk-free rate is 5 percent, and the expected return on the market is 12.50 percent.
What is Diddy's cost of equity?(Round your answer to 2 decimal places.)
Cost of equity
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
