Question
Smith corp has the following data: risk free rate = 3.00%; market return= 15.00%; and beta = 0.8. What is the firm's cost of equity
Smith corp has the following data: risk free rate = 3.00%; market return= 15.00%; and beta = 0.8. What is the firm's cost of equity based on the CAPM?
Group of answer choices
15.00%
12.00%
18.00%
12.60%
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ISE Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
8th International Edition
1265561435, 9781265561437
