PineTech Inc. has a beta of 1.5. The expected return on the market is 11%, and the risk- free rate is 3.5%. What is PineTech's cost of equity?

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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PineTech Inc. has a beta of 1.5. The expected
return on the market is 11%, and the risk-
free rate is 3.5%.
What is PineTech's cost of equity?
Transcribed Image Text:PineTech Inc. has a beta of 1.5. The expected return on the market is 11%, and the risk- free rate is 3.5%. What is PineTech's cost of equity?
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