Multiple Choice
The common stock of Kansas City Power and Light has a beta of 0.80.The Treasury bill rate is 4 percent and the market risk premium is 8 percent.What is their cost of equity capital?
A) 12.0 percent
B) 10.4 percent
C) 7.20 percent
D) 6.4 percent
Correct Answer:
Verified
Correct Answer:
Verified
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