Cost of stock COLLAPSE   Typical progression... a. What is the cost of common stock with risk free rate of 4%, market expected return 11% and Beta of 1.1? b. What is the cost of common stock with risk free rate of 4%, market expected return 11% and Beta of .9? c. What is the cost of common stock with risk free rate of 4%, market expected return 12% and Beta of 1.1? Please help me solve a,b and c. Thank you

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Cost of stock
COLLAPSE
 

Typical progression...

a. What is the cost of common stock with risk free rate of 4%, market expected return 11% and Beta of 1.1?

b. What is the cost of common stock with risk free rate of 4%, market expected return 11% and Beta of .9?

c. What is the cost of common stock with risk free rate of 4%, market expected return 12% and Beta of 1.1?

Please help me solve a,b and c. Thank you 

 

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