Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing for his company.
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 1.09. Paul estimated that the market return is 9.33%. The current rate for 10-year Treasury Bonds is 3.86%. Calculate cost of common equity financing using CAPM – SML formula.
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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 1.09. Paul estimated that the market return is 9.33%. The current rate for 10-year Treasury Bonds is 3.86%. Calculate cost of common equity financing using CAPM – SML formula.
