Question
The following table shows betas for several companies. Calculate each stocks expected rate of return using the CAPM. Assume the risk-free rate of interest is
| The following table shows betas for several companies. Calculate each stocks expected rate of return using the CAPM. Assume the risk-free rate of interest is 6%. Use a 8% risk premium for the market portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) |
| Company | Beta | Cost of capital |
| Cisco | 1.14 | % |
| Apple | 1.36 | % |
| Hershey | .31 | % |
| Coca-Cola | .45 | % |
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The Private Equity Toolkit A Step By Step Guide To Getting Deals Done From Sourcing To Exit
Authors: Tamara Sakovska
1st Edition
1119697107, 978-1119697107
