If risk free rate is 2%, market risk premium (also called the equity risk premium) is 5%, and a company has a beta of 1.5. What is the company’s cost of equity?
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- If risk free rate is 2%, market risk premium (also called the equity risk premium) is 5%, and a company has a beta of 1.5. What is the company’s
cost of equity ?
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- Vostan Industries wants to know its cost of equity. The risk-free rate is 5%,the expected return of the market(Erm) is 7%, and Vostan’s equity beta is 1.5. What is Vostan’s cost of equity (Ke) using CAPM approach?Assume that you are a consultant to Thornton Inc., and you have been provided with the following data: risk 1.8. What is the cost of equity from free rate rRF = 5.5%; market risk premium RPM retained earnings based on the CAPM approach? = 6.0%; and b =1. Using the Capital Asset Pricing Model (CAPM), what's this company's cost of common equity? ·Expected market return = 10% Risk-free rate = 4% Beta = 1.3
- What is the market return if the company's cost of equity is 11.68% and the company has a beta coefficient of 1.8. The expected risk free return is 5.25%What is the cost of equity for a firm if the firm's equity has a beta of 1.4, the risk-free rate of return is 3%, the expected return on the market is 10%, and the return to the company's debt is 7%?The company has a beta of 0.85. If the risk- free rate is 3.4% and the market premium is 8.5%, what is the company's cost of equity?
- Assuming the CAPM or one-factor model holds, what is the cost of equity for a firm if the firm's equity has a beta of 1.2, the risk-free rate of return is 4%, the expected return on the market is 10%, and the return to the company's debt is 7%? A. 11.2% B. 11.4% C. 12.8% D. 12.9% E. None of these.The cost of equity using the CAPM approach The current risk-free rate of return (rRF) is 3.86%, while the market risk premium is 6.63%. the Monroe Company has a beta of 0.92. Using the Capital Asset Pricing Model (CAPM) approach, Monroe's cost of equity isConsider the following information for Vine Inc.: Beta: 1.39 Risk-free rate: 7% Market Risk Premium: 11% What is the cost of the common equity of Vine Inc.? 22.29% 19.21% 32.02%
- Steady Company's stock has a beta of 0.24. If the risk-free rate is 6.1% and the market risk premium is 6.9%, what is an estimate of Steady Company's cost of equity?The risk free rate currently have a return of 2.5% and the market risk premium is 4.22%. If a firm has a beta of 1.42, what is its cost of equity?Steady Company's stock has a beta of 0.21. If the risk-free rate is 5.9% and the market risk premium is 6.9%, what is an estimate of Steady Company's cost of equity?
