Given answer of this financial accounting question Alpha Technologies' stock has a beta of 1.45, the risk-free rate is 4%, and theexpected return on the market is 12%. Calculate Alpha's cost of equity capital.Options:A) 14.80%B) 15.60%C) 16.40%D) 17.20%

Step 1: Define Cost of Equity CapitalThe cost of equity capital represents the return required by…

Answered: Alpha Technologies' stock has a beta of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Alpha Technologies' stock has a beta of 1.45, the risk-free rate is 4%, and the expected return on the market is 12%. Calculate Alpha's cost of equity capital. Options: A) 14.80% B) 15.60% C) 16.40% D) 17.20%