Wiley, Inc., an MNC, has a beta of 1.3. The U.S. stock market is expected to generate an annual return of 11%. Currently, Treasury bonds yield 2%. Based on this information, what is Wiley's estimated cost of equity?

Wiley, Inc., an MNC, has a beta of 1.3. The U.S. stock market is expected to generate an annual return of 11%. Currently, Treasury bonds yield 2%. Based on this information, what is Wiley's estimated cost of equity?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter17: Multinational Capital Structure And Cost Of Capital

Section: Chapter Questions

Problem 13QA

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