Horizon Technology Corp. has a risk-free rate of 4%, and the expected return on the market is 12%. Horizon's beta is 1.2. What is Horizon's cost of equity?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
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What is the cost of equity for the financial accounting question?

Horizon Technology Corp. has a risk-free rate of
4%, and the expected return on the market is 12%.
Horizon's beta is 1.2. What is Horizon's cost of
equity?
Transcribed Image Text:Horizon Technology Corp. has a risk-free rate of 4%, and the expected return on the market is 12%. Horizon's beta is 1.2. What is Horizon's cost of equity?
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