Solution-Calculate cost of common equity financing

Calculate cost of common equity financing

Reference no: EM131402268

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 2.19. Paul estimated that the market return is 9.45%. The current rate for 10-year Treasury Bonds is 3.24%. Calculate cost of common equity financing using CAPM - SML formula.

Round the answers to two decimal places in percentage form.

Reference no: EM131402268

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Calculate cost of common equity financing : 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 2.19. Paul estimated that the market return is 9.45%. The current rate for 10-year Treasury Bonds is 3.24%. Calculate..

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Calculate cost of common equity financing

Reference no: EM131402268

Reference no: EM131402268

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