Red River Corporation has a beta of 1.75 and a marginal tax rate of 24%. The expected market return is 16% and the Treasury security yield (risk-free rate) is 4.5%. Calculate the firm's cost of internal equity.
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- The current risk-free rate of return is 4.67%, while the market risk premium is 6.63%. The D'Amico Company has a beta of 0.78. Using the Capital Asset Pricing Model (CAPM) approach, D'Amico's cost of equity is: a. 8.86%. b. 10.82%. C. 10.33%. d. 9.84%.The current risk-free rate of return is 4.2%. The market risk premium is 6.6%. Allen Co. has a beta of 0.87. Using the Capital Asset Pricing Model (CAPM) approach, Allen's cost of equity isAssume that the Collins Company has a beta of 1.8 and that the risk-free rate of return is 2.5 percent. If the equity-risk premium is six percent, calculate the cost of equity for the Collins Company using the capital asset pricing model.
- Your estimate of the market risk premium is 6%. The risk-free rate of return is 1% and General Motors has a beta of 1.79. What is General Motors' cost of equity capital?The current risk-free rate of return is 4.6%. The market risk premium is 6.6%. D'Amico Co. has a beta of 1.56. Using the Capital Asset Pricing Model (CAPM) approach, D'Amico's cost of equity is ... .··. ··· .... .··. .··...Your estimate of the market risk premium is 6%. The risk-free rate of return is 4% and General Motors has a beta of 1.4. What is General Motors' cost of equity capital? A. 13.0% B. 12.4% C. 11.8% D. 11.2%
- The cost of equity using the CAPM approach The current risk-free rate of return (rRF) is 3.86%, while the market risk premium is 6.63%. the Monroe Company has a beta of 0.92. Using the Capital Asset Pricing Model (CAPM) approach, Monroe's cost of equity isYour estimate of the market risk premium is 8%. The risk−free rate of return is 3.1% and General Motors has a beta of 1.5. According to the Capital Asset Pricing Model (CAPM), what is its expected return?DraftKings Inc (DKNG) has a capital structure of 29% debt and 71% equity. The expected return on the market is 7.65%, and the risk-free rate is 2.41%. What discount rate should an analyst use to calculate the NPV of a project with an equity beta of 1.22 if the firm’s after-tax cost of debt is 4.26%? A. 3.15% B. 5.18% C. 7.49% D. 9.01%
- Your estimate of the market risk premium is 5%. The risk-free rate of return is 3%, and General Motors has a beta of 1.7. According to the Capital Asset Pricing Model (CAPM), what is its expected return? A. 11.5% B. 10.4% C. 12.1% D. 10.9%General AccountingTreasury bills currently have a return of 2.5% and the market risk premium is 7%. If a firm has a beta of 1, what is its cost of equity? What is the expected return according to the Capital Asset Pricing Model? (Here, the cost of equity and the CAPM expected return are, as is pretty much always the case, equal.) O 7% 9.5% O 12% 5% 4.5%