> What is company's cost of equity?

What is company's cost of equity?

What is company's cost of equity?

Posted at： 2014-12-05　
Based on the following information -

1. Risk free rate is 10%, and market risk premium is 5%

2. The company stock beta is 1.2

R = Rf + beta (Rm - Rf), or

R = 10% + 1.2 ( 5%) = 16%

Based on the following information -

1. Risk free rate is 10%, and market risk premium is 5%

2. The company stock beta is 1.2
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