# Cost of equity

Using the risk free rate of 2.86% and a return on the market of 14%, determine the cost of equity (using the Capital Asset Pricing Model) for the firm on the New York Stock Exchange whose name is the closest to your last name (My last name is Carr). This means that you have to find your firm's beta. (Try Yahoo Finance.)

© BrainMass Inc. brainmass.com June 4, 2020, 2:28 am ad1c9bdddfhttps://brainmass.com/business/capital-asset-pricing-model/cost-of-equity-459427

#### Solution Preview

This is a discussion and I only need a paragraph.....My last name is Carr:

Using the risk free rate of 2.86% and a return on the market of 14%, determine the cost of equity (using the Capital Asset Pricing Model) for ...

#### Solution Summary

Cost of equity

$2.19