The risk-free rate is 6.2%, the market risk premium is 8.7%, and the stock%u2019
ID: 2699949 • Letter: T
Question
The risk-free rate is 6.2%, the market risk premium is 8.7%, and the stock%u2019s beta is 1.31. What is the cost of common stock (Ke)? The risk-free rate is 6.2%, the market risk premium is 8.7%, and the stock%u2019s beta is 1.31. What is the cost of common stock (Ke)? The risk-free rate is 6.2%, the market risk premium is 8.7%, and the stock%u2019s beta is 1.31. What is the cost of common stock (Ke)? The risk-free rate is 6.2%, the market risk premium is 8.7%, and the stock%u2019s beta is 1.31. What is the cost of common stock (Ke)? The risk-free rate is 6.2%, the market risk premium is 8.7%, and the stock%u2019s beta is 1.31. What is the cost of common stock (Ke)? The risk-free rate is 6.2%, the market risk premium is 8.7%, and the stock%u2019s beta is 1.31. What is the cost of common stock (Ke)? The risk-free rate is 6.2%, the market risk premium is 8.7%, and the stock%u2019s beta is 1.31. What is the cost of common stock (Ke)?Explanation / Answer
Ke = 6.2 + 1.31*(8.7-6.2 ) = 9.475 %
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