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Moerdyk Company's stock has a beta of 1.5, the risk-free rate (rRFR) is 4.50%, and the...

Moerdyk Company's stock has a beta of 1.5, the risk-free rate (rRFR) is 4.50%, and the market risk premium (rM- rRFR) is 7.50%. What is the firm's required rate of return?

11.36%

15.75%

15.95%

14.50%

13.55%
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Answer #1

Calculation of firms Recquired Rate of Return. (Using CAPM ) Grinen Beta of Stock = 1.so Risk free Rate = 4.50% Market Ris ☆

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