ABNB Share Price $239 Shares Outstanding 100,000,000 Market Cap 23,900,000,000 Risk-free rate is 3% Market risk premium

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	ABNB
Share Price	$239
Shares Outstanding	100,000,000
Market Cap	23,900,000,000

Risk-free rate is 3%

Market risk premium is 4%

Corp tax rate is 24%

The company's stock beta: 1.28

What is the cost of equity for Airbnb? Use the SML Approach. Give the answer as a percentage, accurate to one decimal place.

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Feb 10, 2024 05:12 AM

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ABNB Share Price $239 Shares Outstanding 100,000,000 Market Cap 23,900,000,000 Risk-free rate is 3% Market risk premium

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Expert Answer:

The cost of equity can be determined using the Security Market Line SML approach which is a con... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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