Kingsmen, Inc. is an all equity financed firm. The beta is .75, the market risk premium is 8% and the risk free rate is 4%. The cost of debt at companies of similar risk is 7%. What is the required return on the stock of Kingsmen?© BrainMass Inc. brainmass.com October 10, 2019, 4:49 am ad1c9bdddf
The expert examines the required rate of return for equity financed firm.