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Problem:

Circle Globes' stock has a beta of 1.1 and a standard deviation of 9.23 percent. The market risk premium is 8 percent and the risk-free rate is 3.8 percent.

Requirement:

Question: What is the cost of equity?

Note: Show all workings.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91167871

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