Try to determine the required rate of return on Tilden Woods corporation's common stock. The firms Beta is 1.52. The rate on a 10 year treasury bond is 3.88% and the market risk premium is 8.13%.

Show your formula in steps please. I know the answer is 16.24, however my formula is not giving that result.

My formula is Ks = Krf + B (Km - Krf)

Where:

B is 1.52

Krf is 3.88%

Km is 8.13%

What am i doing wrong??

Try to determine the required rate of return on Tilden Woods Corporation's common stock. The firm's beta is 1.52. The rate on a 10-year Treasury bond is 3.88 percent, and the market risk premium is 8.13 percent