Calculate the cost of common equity

Assignment Help Financial Management

Reference no: EM131562450

Calculate the cost of common equity. Assume that the expected return on a market portfolio is 15%, the company's beta is 1.20 and the risk-free rate is 4%.

What is the cost of common equity? % (Round to two decimal places.)

Reference no: EM131562450

Questions Cloud

Pay for put on stock with same maturity and exercise price : How much would you be willing to pay for a put on this stock with the same maturity and exercise price?

Conflicts between npv and irr on mutually exclusive projects : Conflicts between NPV and IRR on mutually exclusive projects can be due to the following reasons:

Three-month call options and three-month puts on stock : It is possible to buy three-month call options and three-month puts on stock Q. If the interest rate is 6.15% a year, what is the stock price?

What is the expected return on a portfolio : What is the expected return on a portfolio with 40% of its money in UPS and the balance in Wal-Mart?

Calculate the cost of common equity : Calculate the cost of common equity. Assume that the expected return on a market portfolio is 15%, the company's beta is 1.20 and the risk-free rate is 4%.

Order to produce the same effective interest rate as offered : What quoted rate does Thames have to offer in order to produce the same effective interest rate as offered by Piccadilly?

Compare nominal interest versus real interest rates : Compare nominal interest versus real interest rates using US Treasury rates on 10 year notes;

How much principal have you paid over the first ten years : The loan is amortized over 25 years. How much principal have you paid over the first 10 years?

What is return on your portfolio : If the price of Merck increases to $45 and the price of Yahoo decreases to $22 per share, what is the return on your portfolio?

User Account

All Pages