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Commerce · Q511

Business Finance

Graduate and Post Graduate · Commerce · question 511

Q511

Indicate the cost of equity capital, based on the capital asset pricing model, with the following information: Beta coefficient - 1.40 Risk-free rate of interest - 9% Expected Rate of Return on equity in the market - 16%

A.
9.8%
B.
18%
C.
18.8%
Answer
D.
16%

Answer: Option C

Solution

Answer: Option C
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