Assume the beta for a company's stock is .85 and that the risk-free rate is 4.5 percent, whereas the expected return on the market is 10.0 percent. Estimate the company's cost of equity for internal funds using CAPM?

Question

Quizplus · Accepted Answer

The Answer of Assume the beta for a company's stock is .85 and that the risk-free rate is 4.5 percent, whereas the expected return on the market is 10.0 percent. Estimate the company's cost of equity for internal funds using CAPM?

Assume the Beta for a Company's Stock Is