The Common Stock of Wiley and Sons Has a Beta

question 14

Multiple Choice

The common stock of Wiley and Sons has a beta that is 25 percent larger than the overall market beta.Currently,the market risk premium is 9.5 percent while the U.S.Treasury bill is yielding 4.7 percent.What is the cost of equity for this firm?

• A)13.76 percent
• B)14.96 percent
• C)15.80 percent
• D)16.58 percent
• E)16.85 percent

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