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Calculate cost of common equity financing using capm

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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 2.21. Paul estimated that the market return is 8.11%. The current rate for 10-year Treasury Bonds is 2.61%. Calculate cost of common equity financing using CAPM - SML formula.

Reference no: EM132499327

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