Best estimate of investors expected return

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Reference no: EM131904286

You have risen through the ranks of a coffee comany, from the lowly green-apron barista to the coveted black apron, and all the way to CFO. A quick internet check shows that your company's beta is 0.54. The risk-free rate is 4.4 % and you believe the market risk premium to be 5.5 %. What is your best estimate of investors' expected return on your company's stock? (its cost of equity capital)?

Reference no: EM131904286

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