Question
Energy Corp. is a growing company that does not pay dividends. As you need to calculate its cost of capital, you find that the risk-free
Energy Corp. is a growing company that does not pay dividends. As you need to calculate its cost of capital, you find that the risk-free rate is 3.5% and Energy Corp.s beta and market risk premium are 2.6% and 3%, respectively. What is Energy Corp.s cost of equity?
| B. 11.30% | ||
| A. 10.80% | ||
| D. 9.10% | ||
| C. 11.50% |
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Finance For Non Financial Managers
Authors: Gene Siciliano
1st Edition
0071413774, 978-0071413770
