Assume that a company has a beta of 0.78 and the risk-free rate is 5%. If the market risk premium is 7% calculate the cost of equity capital, using the capital asset pricing model: A. 10.5%. B. 5.3%. C. 11.2%. D. 6.0%.
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- Can you answer all the question 9,10,11Calculate the cost of equity capital using CAPM if the risk - free rate of interest is 4 per cent, the return on the market portfolio is 8 per cent, the beta of the firm's assets is .8 and the and beta of equity is 1.2. Provide your answer as a percentage to two decimal places (15.32% should be entered as 15.32). Do not enter the % signBelow, inputs have been arrived for the XYZ company. Using CAPM calculate its cost of equity. (Observe 2 decimal places)
- The cost of equity using the CAPM approach The current risk-free rate of return (rRF) is 3.86%, while the market risk premium is 6.63%. the Monroe Company has a beta of 0.92. Using the Capital Asset Pricing Model (CAPM) approach, Monroe's cost of equity isThe risk-free rate of return is 2.5% and the market risk premium is 8%. Rogue Transport has a beta of 2.2. Using the capital asset pricing model, what is Rogue Transport's cost of retained earnings? a.20.1% b.19.6% c.17.7% d.16.4%Assume that you are a consultant to Thornton Inc., and you have been provided with the following data: risk 1.8. What is the cost of equity from free rate rRF = 5.5%; market risk premium RPM retained earnings based on the CAPM approach? = 6.0%; and b =
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