Estimate the cost of equity capital for bmig ltd

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a. What is the price of a bill with 45 days to maturity, a face value of $1 000 000 and a yield of 6.75% p.a.?

b. An asset has a standard deviation of 15% and a correlation with the market portfolio of 0.46. If the market has a standard deviation of 25%, what is the beta of the asset?

c. BMIG Ltd has a current share price of $12.13. It is expected to pay $0.73 in dividends next period and it has a growth rate of 12%. Estimate the cost of equity capital for BMIG Ltd.

Reference no: EM131693241

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