you are examining a publicaly traded firm and decide to estimate its required return for common equity.
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Question:
you are examining a publicaly traded firm and decide to estimate its required return for common equity. you run a regression and estimate the beta to be 1.85. you check the t-bill rate and find it to be 1.2% annual. you project the market risk premium to be 8.1 percent. the last divident that was paid was 1.25 dollars annual. what is the required return for this equity?
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