You know that the return of Wildhorse Cyclicals common shares is 1.1 times as sensitive to macroeconomic information as the return of the market. If the risk-free rate of return is 4.60 percent and market risk premium is 5.71 percent, what is Wildhorse Cyclicals' cost of common equity capital? (Round intermediate calculation to 5 decimal places, e.g. 1.25140 and final answer to 2 decimal places, e.g. 15.25%.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You know that the return of Wildhorse Cyclicals common shares is 1.1 times as sensitive to macroeconomic information as the
return of the market. If the risk-free rate of return is 4.60 percent and market risk premium is 5.71 percent, what is Wildhorse
Cyclicals' cost of common equity capital? (Round intermediate calculation to 5 decimal places, e.g. 1.25140 and final answer
to 2 decimal places, e.g. 15.25%.)
Cost of common equity capital
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Transcribed Image Text:Question 3 of 4 0/0.5 View Policies Show Attempt History Current Attempt in Progress Your answer is incorrect. You know that the return of Wildhorse Cyclicals common shares is 1.1 times as sensitive to macroeconomic information as the return of the market. If the risk-free rate of return is 4.60 percent and market risk premium is 5.71 percent, what is Wildhorse Cyclicals' cost of common equity capital? (Round intermediate calculation to 5 decimal places, e.g. 1.25140 and final answer to 2 decimal places, e.g. 15.25%.) Cost of common equity capital eTextbook and Media Save for Later Attempts: 2 of 3 used Submit Answer APR 山T( !!
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