If the risk-free rate is 4 percent, an all-equity firm's beat is 2, and the market risk premium is 6 percent, what is the firm's cost of capital?
Answer: 4% + 2 * 6% = 16%
If the risk-free rate is 4 percent, an all-equity firm's beat is 2, and the market risk premium is 6 percent, what is the firm's cost of capital?
Answer: 4% + 2 * 6% = 16%
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.