Question
The stock market price of a company is $15 and the beta is equal to 2.52. The risk-free rate is 1.5 percent and the market
The stock market price of a company is $15 and the beta is equal to 2.52. The risk-free rate is 1.5 percent and the market premium is 10.6 percent. What is the cost of equity according to the CAPM?
a.28.21 percent
b.24.43 percent
c.32.00 percent
d.9.21 percent
e.15.12 percent
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
