Explore BrainMass

Cost Equity multiple choice

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Obi-Wan's common stock has a beta of 1.4. If the risk-free rate is 3 percent and the market risk premium is 15 percent, what is Obi-Wan's cost of equity?
a. 16.80%.
b. 19.80%.
c. 21.00%.
d. 24.00%.

© BrainMass Inc. brainmass.com December 20, 2018, 1:15 am ad1c9bdddf