The following financial information is available on Rawls Manufacturing Company: $$\begin{array} { l r }
\text { Current per share market price } & \$ 48.00 \
\text { Beta } & 1.1 \
\text { Expected rate of return on market } & 12.0 \% \
\text { Risk-free rate } & 6.0 \%
\end{array}$$ ? Rawls can issue new common stock to net the company $44 per share. Determine the cost of internal equity capital using the capital asset pricing model approach. (Compute answer to the nearest 0.1%.)

Question

The following financial information is available on Rawls Manufacturing Company: $$\begin{array} { l r } 
\text { Current per share market price } & \$ 48.00 \
\text { Beta } & 1.1 \
\text { Expected rate of return on market } & 12.0 \% \
\text { Risk-free rate } & 6.0 \%
\end{array}$$ ? Rawls can issue new common stock to net the company $44 per share. Determine the cost of internal equity capital using the capital asset pricing model approach. (Compute answer to the nearest 0.1%.)

Quizplus · Accepted Answer

The Answer of The following financial information is available on Rawls Manufacturing Company: $$\begin{array} { l r } 
\text { Current per share market price } & \$ 48.00 \
\text { Beta } & 1.1 \
\text { Expected rate of return on market } & 12.0 \% \
\text { Risk-free rate } & 6.0 \%
\end{array}$$ ? Rawls can issue new common stock to net the company $44 per share. Determine the cost of internal equity capital using the capital asset pricing model approach. (Compute answer to the nearest 0.1%.)

The Following Financial Information Is Available on Rawls Manufacturing Company