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Your team was asked to compute for the cost of equity for prospect companies using CAPM method and the manager provided you the following information: Cisco Co. Salesforce Co. 3% Risk free rate Beta Market return Cost of equity 1.25 12% 14.50% 119 15% SAP SE Co. 4% 1.3 11.80% What is the market return for SAP SE Co? Answer: Adobe Co. 5% 1.4 8%

Your team was asked to compute for the cost of equity for prospect companies using CAPM method and the manager provided you the following information: Cisco Co. Salesforce Co. 3% Risk free rate Beta Market return Cost of equity 1.25 12% 14.50% 119 15% SAP SE Co. 4% 1.3 11.80% What is the market return for SAP SE Co? Answer: Adobe Co. 5% 1.4 8%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Your team was asked to compute for the cost of equity for prospect companies using CAPM method and the manager provided you the following information: Cisco Co. Salesforce Co. 3% Risk free rate Beta Market return Cost of equity 1.25 12% 14.50% 119 15% SAP SE Co. 4% 1.3 11.80% What is the market return for SAP SE Co? Answer: Adobe Co. 5% 1.4 8%
Transcribed Image Text:Your team was asked to compute for the cost of equity for prospect companies using CAPM method and the manager provided you the following information: Cisco Co. Salesforce Co. 3% Risk free rate Beta Market return Cost of equity 1.25 12% 14.50% 119 15% SAP SE Co. 4% 1.3 11.80% What is the market return for SAP SE Co? Answer: Adobe Co. 5% 1.4 8%
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