TJ Co stock has a beta of 1.64, the current risk-free rate is 5.94 percent, and the expected return on the market is 14.19 percent. What is TJ Co's cost of equity? O 29.21% O 19.47% O 21.77% O 33.01%

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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TJ Co stock has a beta of 1.64, the current risk-free rate is 5.94 percent, and the expected return on the
market is 14.19 percent. What is TJ Co's cost of equity?
O 29.21%
O 19.47%
O 21.77%
O 33.01%
Transcribed Image Text:TJ Co stock has a beta of 1.64, the current risk-free rate is 5.94 percent, and the expected return on the market is 14.19 percent. What is TJ Co's cost of equity? O 29.21% O 19.47% O 21.77% O 33.01%
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