What is your company's required return on common equity? You know a few key things: The...
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What is your company's required return on common equity? You know a few key things: The 10-year US Treasury note has a yield of 2.65%. You company's current stock price is $128.96, and the beta has hovered at about 1.9 for a year or two. The market risk premium is 7.98%. The coupon rate on your only corporate bond issue is locked in at 84.8%. Enter your response as a regular percentage rate, rounded to the nearest first decimal. Do not enter dollar signs, percent signs, or commas. What is your company's required return on common equity? You know a few key things: The 10-year US Treasury note has a yield of 2.65%. You company's current stock price is $128.96, and the beta has hovered at about 1.9 for a year or two. The market risk premium is 7.98%. The coupon rate on your only corporate bond issue is locked in at 84.8%. Enter your response as a regular percentage rate, rounded to the nearest first decimal. Do not enter dollar signs, percent signs, or commas.
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SOLUTION To calculate the required return on common equity using the capital asset pricin... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
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