Computation of cost of equity with use of capm and assuming, Ask an Expert

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Computation of cost of equity with use of CAPM

Assuming the CAPM or one-factor model holds, what is the cost of equity for a firm if the firm's equity has a beta of 1.2, the risk-free rate of return is 2%, the expected return on the market is 9%, and the return to the company's debt is 7%?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9164627

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