Callisto is in the retail shops market. This activity's unlevered beta is currently . 8 8 .
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Callisto is in the retail shops market. This activity's unlevered beta is currently .88. The company has 500,000 outstanding shares of stock which price is 31.05 euros. Financial analysts estimate it is a fair price but worry a bit about its 898171 euros current debt (market value). Expected market return is 1.95%, risk free rate 2.45% and corporate tax rate 1/3. What is the risk premium in Callisto's cost of equity?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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