Acme tool is an all-equity firm ie it has no debt financing


Acme Tool is an all-equity firm (i.e. it has no debt financing) with abeta of 1.25.If the risk-free rate is 4.5% and the market risk premiumis 9% (the expected return in the market is 13.5%), what is the cost of equity capital for Acme Tool.

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Finance Basics: Acme tool is an all-equity firm ie it has no debt financing
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