Question
Your boss asks you to compute the cost of equity for ABC Corp. using the capital asset pricing model (CAPM). You use Yahoo! Finance to
Your boss asks you to compute the cost of equity for ABC Corp. using the capital asset pricing model (CAPM). You use Yahoo! Finance to find out that the beta of the stock is 1.30, the risk-free rate is 3%, and the market risk premium is 5.7%. What is your estimate of the cost of equity?
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General Management Processes And Action
Authors: David A. Garvin
1st Edition
0072432411, 978-0072432411
