The Dybvig Corporation’s common stock has a beta of 1.2. If the risk-free rate is 5.2 percent and the expected return on the market is 10 percent, what is Dybvig’s cost of equity capital? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
Cost of equity capital | % |
Based on CAPM,
Cost of Equity = Risk free rate + Beta * (Expected market return - Risk free rate)
Cost of Equity = 5.2% + 1.2 * (10% - 5.2%)
Cost of Equity = 10.96%
The Dybvig Corporation’s common stock has a beta of 1.2. If the risk-free rate is 5.2...
The Rhaegel Corporation’s common stock has a beta of 1.07. If the risk-free rate is 3.5 percent and the expected return on the market is 10 percent, what is the company’s cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
the Lenzie Corporation’s common stock has a beta of 1.80. If the risk-free rate is 4.9% and the expected return on the market is 11%, what is the company’s cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Cost of equity capital ____ %
The Lenzie Corporation’s common stock has a beta of 1.30. If the risk-free rate is 4.4% and the expected return on the market is 10%, what is the company’s cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Cost of equity capital ___ %
The Lenzie Corporation’s common stock has a beta of 1.90. If the risk-free rate is 5.9% and the expected return on the market is 13%, what is the company’s cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Cost of equity capital
Sheridan Industries common stock has a beta of 1.2. If the
market risk-free rate is 5.2 percent and the expected return on the
market is 8.2 percent, what is Sheridan’s cost of common stock?
I solved this problem incorrectly by doing
Kes=Rrf+(Betaesx market risk
premium)
Kes=0.052+(1.2x0.082)
Kes=0.052+0.098400
Kes=0.1504=15.0%
I'm not sure what I am doing wrong. Please show full
calculation.
X Your answer is incorrect. Sheridan Industries common stock has a beta of 1.2. If the market risk-free rate is...
The Rhaegel Corporation's common stock has a beta of 1.1. If the risk-free rate is 5.1 percent and the expected return on the market is 13 percent, what is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) Cost of equity capital
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The Rhaegel Corporation's common stock has a beta of 1.4. If the risk-free rate is 5.4 percent and the expected return on the market is 12 percent, what is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity capital
Saved Help The Rhaegel Corporation's common stock has a beta of 1.7. If the risk-free rate is 4.8 percent and the expected return on the market is 10 percent, what is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity capital
The common stock of Sunwest, Inc. has a beta of.87. Assume the risk-free rate is 3.6 percent and the expected return on the market is 14 percent. What is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity %