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. KCP&L is in the 34% tax bracket. What is their cost of equity capital?
A) 12.0%
B) 10.4%
C) 7.20%
D) 6.4%
E) 8.22%
Correct Answer:
Verified
Correct Answer:
Verified
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