Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing
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Question:
Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing for his company. The stock has a beta of 0.70. Paul estimated that the market return is 9.63%. The current rate for 10-year Treasury Bonds is 4.36%. Calculate cost of common equity financing using CAPM - SML formula.
Round the answers to two decimal places in percentage form.
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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