=+Problem 7.1 a. ABC plc has a beta of 1.2. If the risk-free rate of return is
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=+Problem 7.1
a. ABC plc has a beta of 1.2. If the risk-free rate of return is 2.5 per cent and the market risk premium is 6.0 per cent, what is ABC’s cost of equity capital?
b. DEF Inc has a beta of 0.75. If the market risk premium is 6.0 per cent and DEF’s cost of equity capital is 8.0 per cent, what is the risk-free rate of return?
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Related Book For
Corporate Finance For Business The Essential Concepts
ISBN: 9783030924188
2nd Edition
Authors: Ronny Manos, Keith Parker, D. R. Myddelton
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