Question
Using the following information, calculate the cost of equity using the build-up method: Risk-free rate = 2.80% Beta = 1.5 Equity risk premium = 7.00%
Using the following information, calculate the cost of equity using the build-up method: Risk-free rate = 2.80% Beta = 1.5 Equity risk premium = 7.00% Size premium = 5.70% Specific company risk = 6.00% Effective tax rate = 30% Debt as a % of total capital = 40% Interest rate on debt = 6.50
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Introduction To Financial Management
Authors: Sudanshu Pandeya
1st Edition
1774695316, 978-1774695319
