Question
For firm Inter-global the domestic CAPM Beta is 1.1 the domestic market risk premium is 6.0%; and the global CAPM Beta is 0.9 with a
For firm Inter-global the domestic CAPM Beta is 1.1 the domestic market risk premium is 6.0%; and the global CAPM Beta is 0.9 with a risk premium of 7.0%. What are the Domestic (D) and Global (G) costs of equity capital? The risk free rate is a constant 3% in both.
| a. | D=9.0%; G=9.3% | |
| b. | None of these options | |
| c. | D=9.6%; G=9.0% | |
| d. | D=9.3%; G=9.0% |
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Advanced Financial Accounting
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
10th edition
978-0078025624
