The Treasury bond rate is currently 6% and the market return was last reported to be...
The Treasury bond rate is currently 6% and the market return was last reported to be 18%. National Bank has a beta of 2.32. What is the cost of equity?
Homework Answers
Cost of equity = Risk free rate + Beta(Market return - Risk free rate)
Cost of equity = 6% + 2.32(18% - 6%)
Cost of equity = 33.84%
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