As per the Chagg Policies, you can ask one question at a time.
As we also have to follow HOMEWORKLIB POLICY, question 5 is answered
here. Please pass on the other question.
Cost of Equity = Rf + Beta (Rm-Rf)
= 2.5% +1.2 * 5
=2.5% + 6%
= 8.5%
If there is any query, please ask in comment section
Company X currently is an all-equity firm with an expected return of 6.6%. It faces no...
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