Question
Ebeys Enterprises has a beta of 2. The stock is currently selling for $12 a share. The overall stock market has a10 percent rate of
Ebeys Enterprises has a beta of 2. The stock is currently selling for $12 a share. The overall stock market has a10 percent rate of return and a risk premium of 8 percent. What is the firms cost of equity?
Group of answer choices
2%
20% 6%
22%
18%
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Personal Finance Turning Money into Wealth
Authors: Arthur J. Keown
7th edition
978-0133856507, 013385650X, 133856437, 978-0133856439
