The Nixon Corporation's common stock has a cost of capital of 12 percent. If the market risk premium is 8 percent and the expected market return is 10 percent. What is the company's equity beta? O A. 1.2 ОВ.1.25 O C.0.7 O D. 1

The Nixon Corporation's common stock has a cost of capital of 12 percent. If the market risk premium is 8 percent and the expected market return is 10 percent. What is the company's equity beta? O A. 1.2 ОВ.1.25 O C.0.7 O D. 1

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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Please answer multi-choice question in photo.

The Nixon Corporation's common stock has a cost of capital of 12 percent. If the market risk premium is 8 percent and the expected market return is 10 percent. What is the
company's equity beta?
O A. 1.2
В. 1.25
ОС. 0.7
O D. 1

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