Your Estimate of the Market Risk Premium Is 7

question 67

Multiple Choice

Your estimate of the market risk premium is 7%.The risk-free rate of return is 4% and General Motors has a beta of 1.5.What is General Motors' cost of equity capital?

• A)13.5%
• B)14.5%
• C)13.9%
• D)14.8%
• E)15.1%

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