Halestorm Corporation's common stock has a beta of 1.22. Assume the risk-free rate is 4.7 percent and the expected return on the market is 12.2 percent. What is the company's cost of equity capital?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter14: Security Structures And Determining Enterprise Values
Section: Chapter Questions
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Halestorm Corporation's common stock has a beta of
1.22. Assume the risk-free rate is 4.7 percent and the
expected return on the market is 12.2 percent.
What is the company's cost of equity capital?
Transcribed Image Text:Halestorm Corporation's common stock has a beta of 1.22. Assume the risk-free rate is 4.7 percent and the expected return on the market is 12.2 percent. What is the company's cost of equity capital?
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