The beta of a corporation is 0.96 and the yield on government bonds is 3.2% and...

 

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The beta of a corporation is 0.96 and the yield on government bonds is 3.2% and the market risk premium is 6.5%. Find the cost of equity. cost of equity.......... % . Company ABC has a capital structure of 40% debt and 60% equity. If the company has a WACC of 8.5% and a cost of debt of 5%, the company's tax rate is 20%. Find the cost of equity. Owner (cost of equity) cost of equity..............% The beta of a corporation is 0.96 and the yield on government bonds is 3.2% and the market risk premium is 6.5%. Find the cost of equity. cost of equity.......... % . Company ABC has a capital structure of 40% debt and 60% equity. If the company has a WACC of 8.5% and a cost of debt of 5%, the company's tax rate is 20%. Find the cost of equity. Owner (cost of equity) cost of equity..............%

Answer rating: 100% (QA)

To find the cost of equity we can use the Capital Asset Pricing Model CAPM formula which is commonly ... View the full answer