Calculate cost of common equity financing using capm

Reference no: EM132029995

Question: 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 2.41. Paul estimated that the market return is 6.08%. The current rate for 10-year Treasury Bonds is 3.39%. 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) Your Answer:

Reference no: EM132029995

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