Question
Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing for his company. The stock has a beta
Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing for his company. The stock has a beta of 0.68. Paul estimated that the market return is 9.24%. The current rate for 10-year Treasury Bonds is 4.03%. Calculate cost of common equity financing using CAPM - SML formula.
Round the answers to two decimal places in percentage form.
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International Financial Reporting Standards An Introduction
Authors: Belverd E. Needles, Marian Powers
3rd Edition
1133187943, 978-1133187943
