Wild Swings, Inc.'s stock has a beta of 2.09. If the risk-free rate is 5.99% and the market risk premium is 7.11%, what is an estimate of Wild Swings' cost of equity? Wild Swings's cost of equity capital is __ % ? (Round to two decimal places.)

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A: Cost of common stock refers to the return to be earned by the stockholders in the company over the…

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A: The cost of common stock is the cost of issuing the equity capital of the company. The cost of…

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A: Beta = 1.2Risk-free rate = 6% = 0.06Expected return on the market = 11% = 0.11

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A: We need to calculate CAPM equation to calculate required rate return.Required rate of return = Risk…

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A: Beta =0.94 Risk Free rate =4% Expected market return =9%

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A: The required rate of return measure of the profitability of an investment and is used to evaluate…

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A: Required rate of return (RRR) is the least required rate at which an investor will agree to invest…

Q: What is the company’s cost of common stock, rs?

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A: A combination of the different types of funds and securities for the investment is term as the…

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A: It is the case where dividend yield is to be used to evaluate two stocks. Risk-free rate (Rf) = 6.4%…

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Q: A firm's stock has a beta of 1.7. The expected T-bill return is 3.7%. and the expected market return…

A: Risk-free rate(expected T-bill return) = 3.7%Beta = 1.7Expected market return = 7%

Q: Vild Swings, Inc.'s stock has a beta of 2.6. If the risk-free rate is 5.9% and the market risk…

A: The formula used is shown:

Q: company's cost of equity capital?

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A: We need to compute AC's expected stock price return for next year as per the model given

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Q: The Rhaegel Corporation's common stock has a beta of 11. If the risk-free rate is 5.1 percent and…

A: Given, Beta = 1.1 Risk-free rate (Rf) = 5.1% Expected return of the market(Rm)  = 13%

Q: risk-free rate of interest is 4%. Use a 7% risk premium for the market portfolio. Note: Do not round…

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