Estimate owego storage required return on equity investment

Reference no: EM13305703

Owego storage and housing ,Inc., is considering building a new warehouse in Endicott, New York. Owego Storage has 2 million common shares outstanding. The share price is $11. Assume rf = 4.5%, = 0.75, and rM - r f = 11.5%. Estimate Owego storage's required return on its equity investment in the new warehouse.

Reference no: EM13305703

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