Multiple Choice:

• According to what we have seen in class/exercises applying the calculations for absolute valuation in a company, you have the following information to calculate the appropriate cost of equity using the CAPM approach for Restaurant Brand International. The current price per share is 60$, book value per share is 7.20$ and the consensus target price is 70.87$. The current number of shares is 473.55 Million. The risk-free rate is 0.25% and the 10-year government bond yield is 1.75%, the market risk premium is 6.5% for the market, and the Beta of the stock is 1.2. Remember that there may be extra information you dont need.

  1. 9.55%

  2. 7.45%

  3. 11.65%

  4. 8.05%