The risk-free rate is 3.2%, the market risk premium is 7.6%, and the stock's beta is 1.45. What is the cost of common stock using the CAPM Equation?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 1P
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General accounting

The risk-free rate is 3.2%, the market risk
premium is 7.6%, and the stock's beta is 1.45.
What is the cost of common stock using the
CAPM Equation?
Transcribed Image Text:The risk-free rate is 3.2%, the market risk premium is 7.6%, and the stock's beta is 1.45. What is the cost of common stock using the CAPM Equation?
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