Question: Next Page Page 4 Question 3 (1 point) Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing

Next Page Page 4 Question 3 (1 point) Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing for his company. The stock has a beta of 1.01. Paul estimated that the market return is 9.78%. The current rate for 10-year Treasury Bonds is 2.98%. Calculate cost of common equity financing using CAPM - SML formula. Round the answers to two decimal places in percentage form. (Write the percentage sig the "units" box) Your Answer: Answer units

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