Calculate the Cost of Equity Capital Using CAPM If the Risk-Free

question 40

Multiple Choice

Calculate the cost of equity capital using CAPM if the risk-free rate of interest is 5 per cent,the return on the market portfolio is 12 per cent,beta is 0.8 and the franking premium is 2 per cent.

• A)10.6%
• B)14%
• C)12.2%
• D)12%

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