Question
Your firm's stock has a beta of 1.5. A relevant risk-free rate is 3.0% and a good estimate for a return on a broad market,
Your firm's stock has a beta of 1.5. A relevant risk-free rate is 3.0% and a good estimate for a return on a broad market, such as the S&P 500, is 11.0%. What is an estimate of your firm's Ke?
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Foundations Of Finance
Authors: Arthur J. Keown, John H. Martin, J. William Petty
10th Edition
0135160618, 978-0135160619
