Kuma plc stock has an equity beta of 1.10 and the risk-free rate of return is 3%.

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Kuma plc stock has an equity beta of 1.10 and the risk-free rate of return is 3%. The market rate of return is 14%. Kuma has 5 million shares currently trading Using The CAPM ,what is the cost of Equity (ke/re)?

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Corporate Financial Management

ISBN: 978-0273758839

5th edition

Authors: Glen Arnold

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Posted Date: Mar 27, 2023 02:04 AM

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Kuma plc stock has an equity beta of 1.10 and the risk-free rate of return is 3%.

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The cost of equity kere can be calculated using the Capital Asset Pricing Model CAPM wh... View the full answer

Corporate Financial Management

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