Solar Technologies Inc. has a beta of 1.45, the risk-free rate is 4.5%, and the market return is expected to be 11%. Calculate Solar Technologies' cost of equity capital. A) 13.93% B) 14.75% C) 15.82% D) 16.45%
Solar Technologies Inc. has a beta of 1.45, the risk-free rate is 4.5%, and the market return is expected to be 11%. Calculate Solar Technologies' cost of equity capital. A) 13.93% B) 14.75% C) 15.82% D) 16.45%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Solar Technologies Inc. has a beta of 1.45, the risk-free
rate is 4.5%, and the market return is expected to be 11%.
Calculate Solar Technologies' cost of equity capital.
A) 13.93%
B) 14.75%
C) 15.82%
D) 16.45%
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