What is the cost of equity for this firm

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Reference no: EM132038823

1. The common stock of Modern Interiors has a beta of 2.55. The market rate of return is 10.6 percent and the risk-free rate is 2.2 percent. What is the cost of equity for this firm, according to the CAPM? Input your answer as a decimal rounded to four places.

2. You bought a stock for $21.8 at time t; at time t+1, the stock paid a dividend of $1.22 and you sold the stock for $24.08. What is your realized return on your investment?

Reference no: EM132038823

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