Solution-Cost of equity and the weighted average cost

Cost of equity and the weighted average cost

Reference no: EM131101066

Grace Fine Dining Trust is financed 100 percent with equity and intends to remain this way. Grace's common stock beta is 1.20, the expected market return is 12 percent, and the risk-free rate is 5 percent. What are the cost of equity and the weighted average cost of capital for Grace?

A.10% ; 13.40%

B.13.40% ; 15%

C.Both 10%

D.Both 13.40%

Reference no: EM131101066

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Cost of equity and the weighted average cost

Reference no: EM131101066

Reference no: EM131101066

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