Your estimate of the market risk premium is 6 the risk-free


Your estimate of the market risk premium is 6%. The risk-free rate of return is 5% and General Motors has a beta of 1.2. What is General Motors' cost of equity capital?

a. 12.2%
b. 12.9%
c. 11.4%
d. 11.8%

 

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Finance Basics: Your estimate of the market risk premium is 6 the risk-free
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