Calculate the cost of equity capital using CAPM if the risk-free rate of interest is 5 per cent, the return on the market portfolio is 8 per cent, the beta of the firm's assets is .8 and the and beta of equity is 1.2. Provide your answer as a percentage to two decimal places (15.32% should be entered as 15.32)

Answer rating: 100% (QA)

To calculate the cost of equity capital using the Capital Asset Pricing Model CAPM we can use the ... View the full answer