Question
Smathers Corporation stock has a beta of 1.21. The market risk premium is 7.20 percent and the risk-free rate is 2.94 percent annually. What is
Smathers Corporation stock has a beta of 1.21. The market risk premium is 7.20 percent and the risk-free rate is 2.94 percent annually. What is the company's cost of equity?
Multiple Choice
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7.87%
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11.65%
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9.87%
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7.64%
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8.09%
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Essentials Of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
13th Edition
0324258755, 9780324258752
