Problem 11-1 Cost of Equity (LG11-3) Diddy Corp. stock has a beta of 1.3, the current risk-free rate is 3 percent, and the expected return on the market is 12.50 percent.   What is Diddy’s cost of equity? (Round your answer to 2 decimal places.)     Cost of equity %

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ISBN:9781337671743
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Chapter11: The Cost Of Capital
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Problem 11-1 Cost of Equity (LG11-3)

Diddy Corp. stock has a beta of 1.3, the current risk-free rate is 3 percent, and the expected return on the market is 12.50 percent.


 

What is Diddy’s cost of equity? (Round your answer to 2 decimal places.)


 

  Cost of equity %  
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