Question
The common stock has a beta of 1.2. The risk-free rate is 5 percent and the expected return on the market (Rm) is 11 percent
The common stock has a beta of 1.2. The risk-free rate is 5 percent and the expected return on the market (Rm) is 11 percent (so the market risk premium is 6 percent).
| What is the companys cost of equity capital? Enter your answer as a percentage rounded to 2 decimal places (e.g., enter 5.25 percent as 5.25) |
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Corporate Financial Management
Authors: Julian Ralph Franks, Harry H. Scholefield
2nd Edition
0566020548, 978-0566020544
