Question: How would your answer in question 13 changes if the current long-term government bond yield was 3 percent and Fastest Company's beta was 1.5? In

How would your answer in question 13 changes if the current long-term government bond yield was 3 percent and Fastest Company's beta was 1.5?

In question 13 suppose the current long-term government bond yield is 2 percent and the estimated market risk premium is 5 percent. Fastest Company's beta is estimated to be 1.15. Using CAPM, estimate Fastest Company's cost of common equity.

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