Fairway golf corporation has a beta of 12 if the


Fairway Golf Corporation has a beta of 1.2. If the three-month Treasury bills currently yield 2.9 percent and the market risk premium is estimated to be 5.2 percent, what is Fairway’s cost of equity capital?

a. 9.14%

b. 5.66%

c. 8.10%

d. 8.68%

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Financial Management: Fairway golf corporation has a beta of 12 if the
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