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’t bond rate is 3%; the current beta of equity is 1.5; compute the cost of equitywhat is the Cost of equity

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 12EP

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The 10-years gov’t bond rate is 3%; the current beta of equity is 1.5; compute the cost of
equitywhat is the Cost of equity

Definition Definition Amount of return a company generally pays to its equity investors. The cost of equity represents the compensation required by the market in lieu of owning the asset firm and simultaneously bearing the risk of ownership.

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