Question
MaybeGood Inc (MG) is raising $100MM in equity capital (representing 100% ownership of the firm). The firm's management is telling potential investors that it hopes
MaybeGood Inc (MG) is raising $100MM in equity capital (representing 100% ownership of the firm). The firm's management is telling potential investors that it hopes to grow the $100MM into $150MM in 2.2 years. At this time (2.2 years from now), MG will pay its owners the amount the $100MM has grown to (hopefully $150MM) and close down the entity.
What is MG's cost of equity capital, rE?
Round your answer to three decimal places.
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Fundamentals Of Financial Planning
Authors: Michael A Dalton, Joseph Gillice
3rd Edition
1936602091, 9781936602094
