Hoolahan Corporation's common stock has a beta of 1.21. Assume the risk-free rate is 4.6 percent...

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Question

Hoolahan Corporations common stock has a beta of 1.21. Assume the risk-free rate is 4.6 percent and the expected return on t

Answer 1

Answer #1

Cost of equity = Risk free rate + beta(market return - risk free rate)

Cost of equity = 4.6% + 1.21 (12.1% - 4.6%)

Cost of equity = 4.6% + 9.075%

Cost of equity = 13.68%

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Answer 2

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