Paul sharp is cfo of fast rocket inc he tries to determine


Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing for his company. The stock has a beta of 2.27. Paul estimated that the market return is 9.78%. The current rate for 10-year Treasury Bonds is 4.85%. Calculate the cost of common equity financing using CAPM – SML formula.

Round the answers to two decimal places in percentage form.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Paul sharp is cfo of fast rocket inc he tries to determine
Reference No:- TGS01363215

Expected delivery within 24 Hours