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Problem 7 Intro Amazon has a beta of 0.6. The risk-free rate is 2.8% and the expected return on the S&P500 is 8%. Attempt 1/5

Problem 7

Intro

Amazon has a beta of 0.6. The risk-free rate is 2.8% and the expected return on the S&P500 is 8%.

Attempt 1/5 for 10 pts.

Part 1

What is Amazon's cost of equity?

Submit

Attempt 1/5 for 10 pts.

Part 2

Now assume that the expected market risk premium is 8%. What is Amazon's cost of equity?

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