Question
Suppose that currently the risk free rate of interest, R f , is 2%, the expected rate of return on the market portfolio, R m
Suppose that currently the risk free rate of interest, Rf, is 2%, the expected rate of return on the market portfolio, Rm, is 9% and beta of the common stock of Northern Mines Ltd. is 2.5. Calculate the current cost of equity capital, denoted by ke, to Northern Mines Ltd.
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Accounting Business Reporting For Decision Making
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
4th Edition
978-0730302414, 0730302415
