Callisto is in the retail shops market. This activity's unlevered beta is currently $\mathrm{.}88.$ The company has $500,000$ outstanding shares of stock which price is $31.05$ euros. Financial analysts estimate it is a fair price but worry a bit about its $898171$ euros current debt $($market value$).$ Expected market return is $1\mathrm{.}95\%,$ risk free rate $2.45\%$ and corporate tax rate $1/3.$ What is the risk premium in Callisto's cost of equity?

Answer rating: 100% (QA)

To calculate the risk premium for Callistos cost of equity we can use the Capital ... View the full answer