Answered

Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Discover a wealth of knowledge from experts across different disciplines on our comprehensive Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

The yield on a three-month T-bill is 3.29%, and the yield on a 10-year T-bond is 4.67%. the market risk premium is 6.17%. The Allen Company has a beta of 0.92. Using the Capital Asset Pricing Model (CAPM) approach, Allen’s cost of equity is

Sagot :

Zviko

Answer:

10.35 %

Explanation:

Using the Capital Asset Pricing Model (CAPM) approach, Allen’s cost of equity is

Cost of Equity = 4.67% + 0.92 x 6.17%

                         = 10.35 %

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.