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Commerce · Q6

Business Finance

Graduate and Post Graduate · Commerce · question 6

Q6

Indicate the cost of equity capital based on capital asset pricing model with the following information. Beta coefficient 1.40 Risk free rate of interset 9% Expected rate of return on equity in the market 16%

A.
98%
B.
18%
C.
18.8%
Answer
D.
16%

Answer: Option C

Solution

Answer: Option C
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