Business, 08.07.2021 19:00 dothework

Assuming the CAPM or one-factor model holds, what is the cost of equity for a firm if the firm's equity has a beta of 1.2, the risk-free rate of return is 2%, the expected return on the market is 9%, and the return to the company's debt is 7%? A. 10.4%.
B. 10.8%.
C. 12.8%
D. 14.4%.
E. none of the above.

Answers: 1

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Assuming the CAPM or one-factor model holds, what is the cost of equity for a firm if the firm's equ...