Question
The common stock of Mill Stones has a beta that is 10 percent greater than the overall market beta. Currently, the market risk premium is
The common stock of Mill Stones has a beta that is 10 percent greater than the overall market beta. Currently, the market risk premium is 7.65 percent while the U.S. Treasury bill is yielding 4.50 percent. What is the cost of equity for this firm?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th International Edition
1265533199, 978-1265533199
