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Your firm has a Beta of 0.8 at a time when the expected market return is...

Your firm has a Beta of 0.8 at a time when the expected market return is 10.9% and the risk free rate is 2.2%. What is your cost of equity capital? (Enter your response as a percentage with two decimal places, ex: 12.34)

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Answer #1

Cost of equity = Rf + Beta x (market return - RF) 9.16% 0.022+0.8*(0.109-0.022))

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