Oak Enterprises has a beta of 1.2, the market return is 8%, and the T-bill rate is 4%. Its tax rate is 40%. What is its expected required return of common equity?
A) 11.45%
B) 8.80%
C) 5.28%
D) 7.43%

Question

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The Answer of Oak Enterprises has a beta of 1.2, the market return is 8%, and the T-bill rate is 4%. Its tax rate is 40%. What is its expected required return of common equity?
A) 11.45%
B) 8.80%
C) 5.28%
D) 7.43%

Oak Enterprises Has a Beta of 1