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Using the inputs below, find the required return on a firm's stock, also known as the cost of equity (Your answer should be with three
Using the inputs below, find the required return on a firm's stock, also known as the cost of equity | ||||||||
(Your answer should be with three significant digits right of decimal.) | ||||||||
rRF= | 2.000% | |||||||
rM= | 10.000% | |||||||
RPM= | 8.000% | |||||||
bi= | 1.243 | Put in the three missing digits (XXX). They should be the numbers in your KU email address. | ||||||
ri= | After you type in the beta using the digits from your email address, find the required return. | |||||||
Either use Excel formulas or type in what you find with your calculator. |
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