Question
O'Brien Inc. has the following data: The 10-year Treasury risk free rate is: rRF = 2.00%; the market risk premium is: RPM = 6.00%; and
O'Brien Inc. has the following data: The 10-year Treasury risk free rate is: rRF = 2.00%; the market risk premium is: RPM = 6.00%; and O'Brien stock beta is: b = 1.50. What is the firm's cost of equity from retained earnings based on the Capital Asset Pricing Model (CAPM)?
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International Financial Management
Authors: Jeff Madura
7th Edition
0324071744, 978-0324071740
