CFIN
6th Edition
ISBN: 9780357144039
Author: BESLEY
Publisher: CENGAGE L
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Chapter 8, Problem 16PROB
Summary Introduction
Here,
The cost of equity or required rate of return is “r”.
The risk-free rate is “
The risk premium is “
The market return is “
The beta coefficient is “
The expected market return is 12.5%, required rate of return is 11%, and beta coefficient is 0.8.
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