Diddy Corporation stock has a beta of 1.3, the current risk-free rate is 4 percent, and the expected return on the market is 13.50 percent. What is Diddy's cost of equity? Note: Round your answer to 2 decimal places. Cost of equity %
Diddy Corporation stock has a beta of 1.3, the current risk-free rate is 4 percent, and the expected return on the market is 13.50 percent. What is Diddy's cost of equity? Note: Round your answer to 2 decimal places. Cost of equity %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Question
![Diddy Corporation stock has a beta of 1.3, the current risk-free rate is 4 percent, and the expected return on the market is 13.50
percent.
What is Diddy's cost of equity?
Note: Round your answer to 2 decimal places.
Cost of equity
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac3be618-b645-4bd8-855b-808ff3fc18d4%2F3796c807-ff9c-471d-9e2a-764417a8094f%2Frbsnvh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Diddy Corporation stock has a beta of 1.3, the current risk-free rate is 4 percent, and the expected return on the market is 13.50
percent.
What is Diddy's cost of equity?
Note: Round your answer to 2 decimal places.
Cost of equity
%
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