Multiple Choice
Thermacorp is in the heating and cooling industry and has total assets of $20 million,with stockholders' equity of $15 million,an ROE of 17.3%,and a firm Beta of 1.6.If the risk free rate of return is 4 and the market rate of return is 10,what is the cost of equity?
A) 19.6
B) 7.75
C) 13.6
D) 25.28
Correct Answer:
Verified
Correct Answer:
Verified
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