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ecuity foe Stan is a. 11.16% if the beta of the stock is 0.65 b. 13.092 if if the beta of the siock is 0.68
ecuity foe Stan is a. 11.16\% if the beta of the stock is 0.65 b. 13.092 if if the beta of the siock is 0.68 c. 14.52% if the beta of the stock i 1.05 d. 15.53% if the beta of the stock is 1.17 2. What is the new cost of equity if the bota of the stock is 0.65 ? (Round to two decimal places.). b. What is the new cost of equity if the beta of the stock is 0.88 ? (Round to two decimal pisses i) c. What is the new cost of equity if the beta of the stock is 1.05 ? (Round to two decimal places.) d. What is the new cost of equity if the beta of the stock is 1.17? What do you notce about the change in the cost of equity as beta increases? (Select the best rosponse.) A. A beta of 0.05 resuth in a decrease in the coit of equity of 0.30%(11.46%11.16%). A beta of 1.17 fesults in a decrease in the cost of equity of 1.34% (16.87\% 15.53%) The cast of equity decreases al an increasing rate as beta increasen. 8. A beta of 0.65 results in an increase in the cost of equity of 0.30% (11.46\%-11.16\%). A beta of 1.17 resuas in an increase in the cost of equity of 1.3 ths (16.BT\% 15.53%). The cost of equity increases as beta increases
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