Question
Oak Enterprises has a beta of 1.2, the market return is 8%, and the T-bill rate is 4%. Its tax rate is 21%. What is
Oak Enterprises has a beta of 1.2, the market return is 8%, and the T-bill rate is 4%. Its tax rate is 21%. What is its expected required return of common equity?
A) Between 11% - 12 % B) Between 8% - 9% C) Between 7% - 8% D) Between 5% - 6%
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Investment Science
Authors: David G. Luenberger
1st International Edition
0195391063, 9780195391060
