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QUESTION
Homework #6F (Cost of equity financing)
Homework #6F (Cost of equity financing)
Finance
Question 3 (1 point)
Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing for his company. The stock has a beta of 2.28. Paul estimated that the market return is 8.43%. The current rate for 10-year Treasury Bonds is 4.74%. Calculate cost of common equity financing using CAPM – SML formula.
Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)
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