The Rhaegel Corporation's common stock has a beta of 1.1. If the risk-free rate is 4.5 percent and the expected return on the market is 15 percent, what is the company's cost of equity capital?     Multiple Choice   21%   16.69%   15.25%   16.05%   16.85%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The Rhaegel Corporation's common stock has a beta of 1.1. If the risk-free rate is 4.5 percent and the expected return on the market is 15 percent, what is the company's cost of equity capital?
 

 

Multiple Choice
  •  

    21%

  •  

    16.69%

  •  

    15.25%

  •  

    16.05%

  •  

    16.85%

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