The following financial information is available on Simmons Inc.: $\begin{array}{lr}
\text {Current stock price }&\%48.00\
\text { Beta}&1.1\
\text {Expected rate of return on market }&12.0\%\
\text {Risk-free rate }&6.0\%\
\end{array}$
Determine the cost of retained earnings using the capital asset pricing model approach. (Compute answer to the nearest 0.1%).

Question

The following financial information is available on Simmons Inc.: $\begin{array}{lr}
\text {Current stock price }&\%48.00\
\text { Beta}&1.1\
\text {Expected rate of return on market }&12.0\%\
\text {Risk-free rate }&6.0\%\
\end{array}$
 Determine the cost of retained earnings 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 Simmons Inc.: $\begin{array}{lr}
\text {Current stock price }&\%48.00\
\text { Beta}&1.1\
\text {Expected rate of return on market }&12.0\%\
\text {Risk-free rate }&6.0\%\
\end{array}$
 Determine the cost of retained earnings using the capital asset pricing model approach. (Compute answer to the nearest 0.1%).

The Following Financial Information Is Available on Simmons Inc Determine the Cost of Retained Earnings Using the Capital Asset