Company as historical returns for the past three years are


Company A's historical returns for the past three years are: 6.0%, 15%, and 15%. Similarly, the market portfolio's returns were: 10%, 10%, and 16%. Suppose the risk-free rate of return is 4%. What is the cost of equity capital (required rate of return of company A's common stock), computed with the CAPM?

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Financial Management: Company as historical returns for the past three years are
Reference No:- TGS01408880

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