JaiLai Cos. stock has a beta of 0.6, the current risk-free rate is 6.1 percent, and...

Question

Question

JaiLai Cos. stock has a beta of 0.6, the current risk-free rate is 6.1 percent, and the expected return on the market is 14 percent.

What is JaiLai’s cost of equity?

business finance

Answer 1

Answer #1

Ans 10.84%

Cost of Equity =	Risk free Return + (Market Return - Risk free return)* Beta
Cost of Equity =	6.1% + (14% - 6.1%)*0.6
Cost of Equity =	10.84%

Answer 2

Similar Homework Help Questions

JaiLai Cos. stock has a beta of 0.6, the current risk-free rate is 6.0 percent, and...

JaiLai Cos. stock has a beta of 0.6, the current risk-free rate is 6.0 percent, and the expected return on the market is 10 percent. What is JaiLai’s cost of equity? (Round your answer to 2 decimal places.) Cost of equity ______.__ %
JaiLai Cos. stock has a beta of 0.6, the current risk-free rate is 6.4 percent, and...

JaiLai Cos. stock has a beta of 0.6, the current risk-free rate is 6.4 percent, and the expected return on the market is 12 percent. What is JaiLai’s cost of equity? (Round your answer to 2 decimal places.) Cost of equity %
JaiLai Cos. stock has a beta of 0.7, the current risk-free rate is 6.4 percent, and...

JaiLai Cos. stock has a beta of 0.7, the current risk-free rate is 6.4 percent, and the expected return on the market is 10 percent. What is JaiLai’s cost of equity? (Round your answer to 2 decimal places.)

JaiLai Cos. Stock has a beta of 0.9, the current risk free rate is 6.2%, and...

JaiLai Cos. Stock has a beta of 0.9, the current risk free rate is 6.2%, and the expected return on the market is 12%. What is JaiLais cost of equity? showing formula for excel.
The Lenzie Corporation’s common stock has a beta of 1.60. If the risk-free rate is 6.1%...

The Lenzie Corporation’s common stock has a beta of 1.60. If the risk-free rate is 6.1% and the expected return on the market is 11%, what is the company’s cost of equity capital?
FlavR Co stock has a beta of 2.10, the current risk-free rate is 2.10 percent, and...

FlavR Co stock has a beta of 2.10, the current risk-free rate is 2.10 percent, and the expected return on the market is 9.10 percent. What is FlavR Co's cost of equity?

B24&Co stock has a beta of 1.66, the current risk-free rate is 3.16 percent, and the...

B24&Co stock has a beta of 1.66, the current risk-free rate is 3.16 percent, and the expected return on the market is 10.66 percent. What is B24&Co's cost of equity?
Diddy Corp. stock has a beta of 1.3, the current risk-free rate is 3 percent, and...

Diddy Corp. stock has a beta of 1.3, the current risk-free rate is 3 percent, and the expected return on the market is 12.50 percent. What is Diddy's cost of equity? (Round your answer to 2 decimal places.) Cost of equity %
TJ Co stock has a beta of 1.60, the current risk-free rate is 5.90 percent, and...

TJ Co stock has a beta of 1.60, the current risk-free rate is 5.90 percent, and the expected return on the market is 14.15 percent. What is TJ Co's cost of equity? 19.10% 28.54% 32.08% 21.65%

Diddy Corp. stock has a beta of 1.1, the current risk-free rate is 6 percent, and...

Diddy Corp. stock has a beta of 1.1, the current risk-free rate is 6 percent, and the expected return on the market is 13.00 percent. What is Diddy’s cost of equity? (Round your answer to 2 decimal places.)