Multiple Choice
The common stock of Serenity Homescapes has a beta of 1.21 and a standard deviation of 17.8 percent.The market rate of return is 13.5 percent and the risk-free rate is 3.2 percent.What is the cost of equity for this firm?
A) 15.66 percent
B) 13.61 percent
C) 13.93 percent
D) 16.25 percent
E) 14.90 percent
Correct Answer:
Verified
Correct Answer:
Verified
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