The Common Stock of Kansas City Power and Light Has

question 68

Multiple Choice

The common stock of Kansas City Power and Light has a beta of 0.80. The Treasury bill rate is 4 percent and the market risk premium is 8 percent. KCP&L is in the 34% tax bracket. What is their cost of equity capital?

• A)12.0%
• B)10.4%
• C)7.20%
• D)6.4%
• E)8.22%

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An ancient medical procedure that involves drilling a hole into the human skull for therapeutic or surgical purposes.