The Lenzie Corporation's common stock has a beta of 1.30. If the risk-free rate is 5.3% and the expected return on the market is 11%, what is the company's cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Cost of equity capital %
The Lenzie Corporation's common stock has a beta of 1.30. If the risk-free rate is 5.3% and the expected return on the market is 11%, what is the company's cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Cost of equity capital %
Chapter14: Security Structures And Determining Enterprise Values
Section: Chapter Questions
Problem 1hM
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Transcribed Image Text:The Lenzie Corporation's common stock has a beta of 1.30. If the risk-free rate is 5.3% and the
expected return on the market is 11%, what is the company's cost of equity capital? (Do not round
intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.)
Cost of equity capital
%
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