Consolidated Transfer is an all-equity financed firm.The beta is .75,the market risk premium is 7.78 percent,and the risk-free rate is 3.84 percent.What is the expected rate of return on this stock?
A) 6.80 percent
B) 8.22 percent
C) 9.54 percent
D) 9.68 percent
E) 8.46 percent
Correct Answer:
Verified
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