Multiple Choice
Diddy Corp. stock has a beta of 1.0, the current risk-free rate is 5 percent, and the expected return on the market is 15.5 percent. What is Diddy's cost of equity?
A) 15.50 percent
B) 14.20 percent
C) 18.50 percent
D) 16.30 percent
Correct Answer:
Verified
Correct Answer:
Verified
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