Dynamic Logistics Inc.'s stock has a beta of 0.35. If the risk- free rate is 4.9% and the market risk premium is 6.8%, what is an estimate of Dynamic Logistics Inc.'s cost of equity? (Round to one decimal place.)
Dynamic Logistics Inc.'s stock has a beta of 0.35. If the risk- free rate is 4.9% and the market risk premium is 6.8%, what is an estimate of Dynamic Logistics Inc.'s cost of equity? (Round to one decimal place.)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 4P: An analyst has modeled the stock of a company using the Fama-French three-factor model. The market...
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free rate is 4.9% and the market risk premium is 6.8%, what
is an estimate of Dynamic Logistics Inc.'s cost of equity?
(Round to one decimal place.)"
Transcribed Image Text:Dynamic Logistics Inc.'s stock has a beta of 0.35. If the risk-
free rate is 4.9% and the market risk premium is 6.8%, what
is an estimate of Dynamic Logistics Inc.'s cost of equity?
(Round to one decimal place.)
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