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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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Submitted by Rahul5077 on Sat, 2017-02-18 10:20

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