Question
Wizard Co. Currently has only a real estate division and uses only equity capital; however, it is considering creating consulting and distribution divisions. It's beta
Wizard Co. Currently has only a real estate division and uses only equity capital; however, it is considering creating consulting and distribution divisions. It's beta is currently 1.1. The risk-free rate is 3.6% and the market risk premium is 5.2%. This means that the firm's real estate division will have a cost capital of; A. 7.56%. B. 7.20%. C. 3.60%. D. 9.32%
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Financial Management Principles And Applications
Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.
10th Edition
0131450654, 9780131450653
