38 What is the cost of equity using the Capital Asset Pricing Model (CAPM) if the risk free rate is 8.6%, the beta is 0.9 and the equity risk premium is 5%? 12.74% 13.1% 12.13% 13.6%
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6% + 0.9 * 5% = 8.6% + 4.5% = 13.1% So, the cost of equity using the CAPM is 13.1%. Show more…
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