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Q 13.29: Jen needs to determine the current risk-free rate for investments so she can calculate her company's cost of equity. Jen has found
Q 13.29: Jen needs to determine the current risk-free rate for investments so she can calculate her company's cost of equity. Jen has found the following values: Short-term Treasury bills have a current rate of 0.04%. The 5-year average short-term Treasury bill rate is 0.035%. Long-term Treasury bonds have a current rate of 5.89%. The 5-year average long-term Treasury bond rate is 6.21%. What is the LEAST reasonable risk-free rate for Jen to use when calculating common stock cost of equity? A 5.89% B 0.035% 6.21% D 0.04%
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