Multiple Choice
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) 11.8%
C) 12.9%
D) 11.4%
E) 10.8%
Correct Answer:
Verified
Correct Answer:
Verified
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