What is sheridan cyclicals cost of common equity capital

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Problem 1: You know that the return of Sheridan Cyclicals common shares is 1.7 times as sensitive to macroeconomic information as the return of the market. If the risk-free rate of return is 3.50 percent and market risk premium is 5.71 percent, what is Sheridan Cyclicals' cost of common equity capital? (Round intermediate calculation to 5 decimal places, e.g. 1.25140 and final answer to 2 decimal places, e.g. 15.25%.)

Reference no: EM132930184

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