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The risk-free rate of interest is 3% and the market risk premium is 5%. The overall cost of capital for Wyatt Oil is closest to:

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The risk-free rate of interest is 3% and the market risk premium is 5%.

The overall cost of capital for Wyatt Oil is closest to:

a. 8.1%

b. 8.5%

c. 8.8%

d. 9.3 %

Next Period's Expected Free Expected Cash Flow (Smm) Growth Asset Beta Rate 4,0% 25% Division Oil Exploration 1.4 1.1 0.8 450 525 600 Oil Refining Gas & Convenience Stores

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