Calculate cost of common equity financing using CAPM

Reference no: EM131538395

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 1.02. Paul estimated that the market return is 6.48%. The current rate for 10-year Treasury Bonds is 2.95%. Calculate cost of common equity financing using CAPM – SML formula. Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Reference no: EM131538395

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