Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If share C has a beta of 1 , 3 ; the risk - free rate is 8 % and market risk premium is 7

If share C has a beta of 1,3; the risk-free rate is 8% and market risk premium is 7%, what would the associated cost of equity be?
a.
21.6%
b.
17.1%
c.
24.2%
d.
10.4%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Investments

Authors: Bradford Jordan, Thomas Miller

4th Edition

0073314978, 9780073314976

More Books

Students also viewed these Finance questions

Question

Describe ERP and how it can create efficiency within a business

Answered: 1 week ago

Question

What is the education level of your key public?

Answered: 1 week ago

Question

What are the cultural/ethnic/religious traits of your key public?

Answered: 1 week ago