You know that the return of Momentum Cyclicals common shares is 1.6 times as sensitive to macroeconomic
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You know that the return of Momentum Cyclicals common shares is 1.6 times as sensitive to macroeconomic information as the return of the market. If the risk-free rate of return is 4 percent and market risk premium is 6 percent, what is Momentum Cyclicals’s cost of common equity capital?
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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