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Calculate cost of common equity financing using capm

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Reference no: EM132754697

Problem 1: 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 1.18. Paul estimated that the market return is 6.35%. The current rate for 10-year Treasury Bonds is 2.99%. Calculate cost of common equity financing using CAPM - SML formula.

Reference no: EM132754697

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Calculate cost of common equity financing using capm : Paul Sharp, The current rate for 10-year Treasury Bonds is 2.99%. Calculate cost of common equity financing using CAPM - SML formula.
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