The risk-free rate of return is 3% and the market rate of return is 12%. Delta Company's
Fantastic news! We've Found the answer you've been seeking!
Question:
The risk-free rate of return is 3% and the market rate of return is 12%. Delta Company's past beta is .85. Today, Delta Company's beta has been adjusted to reflect internal changes in the company's structure. New beta 1.15. What is the amount of change in the expected rate of return for Delta Company due to this beta revision?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date: