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Your estimate of the market risk premium is 5%. The risk-free rate of return is 3.6% and General Motors has a beta of 1.6. What is General Motors' cost of equity capital? A. 10.4% B. 11% O C. 12.2% O D. 11.6%

Your estimate of the market risk premium is 5%. The risk-free rate of return is 3.6% and General Motors has a beta of 1.6. What is General Motors' cost of equity capital? A. 10.4% B. 11% O C. 12.2% O D. 11.6%

Essentials Of Investments
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
Section: Chapter Questions
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Your estimate of the market risk premium is 5%. The risk-free rate of return is 3.6% and General Motors has a beta of 1.6. What is General Motors' cost of equity capital? A. 10.4% B. 11% O C. 12.2% O D. 11.6%
Transcribed Image Text:Your estimate of the market risk premium is 5%. The risk-free rate of return is 3.6% and General Motors has a beta of 1.6. What is General Motors' cost of equity capital? A. 10.4% B. 11% O C. 12.2% O D. 11.6%
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