1. Calculating Cost of Equity The Nixon Corporation's common stock has a beta of .95. If the risk-free rate is 2.7 percent and theexpected return on the market is 10 percent, what is the company's cost of equity capital?

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Answered: 1. Calculating Cost of Equity The Nixon…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 16PROB

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1. Calculating Cost of Equity The Nixon Corporation's common stock has a beta of .95. If the risk-free rate is 2.7 percent and the expected return on the market is 10 percent, what is the company's cost of equity capital?