The beta for Target is 0.67. The current T-Bill rate is 3.50% and the T-Bond rate is
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The beta for Target is 0.67. The current T-Bill rate is 3.50% and the T-Bond rate is 3.00%. The MRP for T-Bills is 6.8% and the MRP for T-Bonds is 4.5%.
A. What is the cost of equity using the T-Bill rates?
B. What is the cost of equity using the T-Bond rates?
Related Book For
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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