The common stock of detroit engines has a beta of 1.34 and a standard deviation of 11.4 percent. the market rate of return is 11.5 percent and the risk-free rate is 4 percent. what is the firm's cost of equity?
a. 10.05 percent
b. 12.98 percent
c. 14.05 percent
d. 15.50 percent
e. 15.67 percent
Answers: 3
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The common stock of detroit engines has a beta of 1.34 and a standard deviation of 11.4 percent. the...
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