Return based on an assets systematic risk

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The Up and Coming Corporation's common stock has a beta of 1.5. If the risk-free rate is 4 percent and the expected return on the market is 10 percent, what is the company's cost of equity capital? (Do not round your intermediate calculations.)

In Chapter 12 we saw how to calculate the expected (required) return based on an asset's systematic risk. Use the Security Market Line to determine the required return for this stock

Reference no: EM13766303

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Return based on an assets systematic risk : The Up and Coming Corporation's common stock has a beta of 1.5. If the risk-free rate is 4 percent and the expected return on the market is 10 percent, what is the company's cost of equity capital?

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