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Suppose the following values exist in a market for RenTech common stock, a renewable energy firm. What is the equity risk premium in the market
Suppose the following values exist in a market for RenTech common stock, a renewable energy firm. What is the equity risk premium in the market for renewable energy stocks? Express your answer as a percentage rounded to two decimal places; for example, if you calculate a value of .1345, then you should input your answer as 13.45% and NOT 13.5% or 0.1345 US Treasury Notes (2 year) 2.97% US Treasury Bond (20 year) 5.72% Bank Loan 6.11% Inflation 1.28% Dividend Yield 8.96% Average Market Return (renewables) 10.77% RenTech - beta (price volitility compared to market average = 1) 1.43 RenTech - alpha (yield probability compared to market average = 1) 1.36
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