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Problem:

Suppose your company has an equity beta of 0.58 and the current risk-free rate is 6.1%. If the expected market risk premium is 8.6%,

Task:

Question: What is your cost of equity capital?

  • 6.1%
  • 8.6%
  • 11.1%
  • 14.7%.

Note: Please show the work not just the answer.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91172825

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