https//www 493851534questionld 1aflushed-fasecld 512 tlo salquero grca&152318 43

Question

https//www 493851534questionld 1aflushed-fasecld 512 tlo salquero grca&152318 430 P BUS 341W-01 Fall 2018 Homework: Chapter 12 Homework Score: 0 of 1 pt 8oft2 (6 complete) Hw Score: 34 20% 4 11 of 12pts P12-18 (similar to) Your tim bs planning to invest in astomuted packaging plant Harburtin Indunitries is an Harburtin's cost of capital Round to two decimal places) qity im that specializes in thlis business Suppose Harbuthi's egpy ba is 0 83, h tee rafe s 4 heskpem Enter your answer in the answer box and then click Check Answer All parts showing Type here to search

Explanation / Answer

Cost of equity = Risk free rate + beta ( market risk premium)

Cost of equity = 0.044 + 0.83 ( 0.054)

Cost of equity = 0.0888 or 8.82%

Therefore, cost of capital is 8.82%

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.