Question
XYZ Company Ltd requires you to calculate its cost of equity based on the following information. Beta of XYZ ltd. is 1.2, T-Bill returns of
XYZ Company Ltd requires you to calculate its cost of equity based on the following information. Beta of XYZ ltd. is 1.2, T-Bill returns of the period is 8%, Market return for same period is 15%. If beta of the company changes to 1.8, what will be the changed cost of equity? Why do you feel that it has changed in that direction? cost of retained earnings?
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Financial Management Principles And Applications
Authors: Sheridan Titman, Arthur Keown, John Martin
13th Global Edition
1292222182, 978-1292222189
