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RCI has common stock that has a beta twice as high as the stock market's beta. The stocks sell for $66, T-bills yield 4.1%, the
RCI has common stock that has a beta twice as high as the stock market's beta. The stocks sell for $66, T-bills yield 4.1%, the market risk premium is 11.4% and the tax rate is 33%. What is the cost of equity for RCI? a. 21.60 % b. 18.70 % c. 20.07 % d. 22.57 % e. 26.90 %
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