Given the following information, determine the risk-free rate. - 3717

Solution Posted by
UoPExpert

UoPExpert

Rating : (2)F
Solution Detail
Price: $1.30
  • From: ,
  • Posted on: Mon 26 Mar, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

Given the following information, determine the risk-free rate. 

Cost of equity=12%

Beta=1.50

Market risk premium=3%

 

A. 

8.0%

B. 

7.5%

C. 

6.5%

D. 

7.0%

Solution Description

42) Given the following information, determine the risk-free rate.

Cost of equity

=

12%

Beta

=

1.50

Market risk premium

=

3%