Estimate of companies cost of equity be if he uses the capm

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Q. Based on Companies corporate income tax rate of 40%, the industries current capital structure and an unlevered beta estimate of .90, illustrate what is Companies levered equity beta? c. Assuming a long- term U. S. Treasury bond yield of 5.42% and an estimated market risk premium of 5%, illustrate what should Jims estimate of Companies cost of equity be if he uses the CAPM?

Reference no: EM1396900

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