Cost of equity for the firm


Problem:

The common stock of DUC has a beta of 1.65. The market rate of return is 13.2% and the risk-free rate is 4.8%.

Requirement:

Question: What is the cost of equity for the firm?

  • 18.66%
  • 19.76%
  • 21.08%
  • 24.40%
  • 26.05%

Note: Show all workings.

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Finance Basics: Cost of equity for the firm
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