Problemthe common stock of duke power and light has a beta, Ask an Expert

Accounting

Problem:

The common stock of Duke Power and Light has a beta of 0.80. The Treasury bill rate is 5 percent and the market risk premium is 9 percent. Duke Power and Light is in the 28% tax bracket.

Required:

Question: What is their cost of equity capital?

Note: Please show how to work it out.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91173614

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