Quarri Industries common stock has a beta of 1.6. If the market risk-free rate is 4 percent

Question:

Quarri Industries common stock has a beta of 1.6. If the market risk-free rate is 4 percent and the expected return on the market is 9 percent, what is Quarri’s cost of common stock?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...

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