Question
Suppose Company D's common stock has a beta of 0.85. If the risk-free rate is 1.5 percent and the expected market risk premium is 9
Suppose Company D's common stock has a beta of 0.85. If the risk-free rate is 1.5 percent and the expected market risk premium is 9 percent, what is the companys cost of equity capital?
Group of answer choices
7.875%
7.65%
9.15%
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Contemporary Economics An Applications Approach
Authors: Robert Carbaugh
8th Edition
1138652199, 978-1138652194
