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What is the cost of equity for pittsburgh steel products

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Reference no: EM131141977

The common stock of Pittsburgh Steel Products has a beta of 1.42 and a standard deviation of 21.6 percent. The market rate of return is 12.5 percent and the risk-free rate is 5 percent. What is the cost of equity for Pittsburgh Steel Products?

a. 15.65 percent

b. 17.75 percent

c. 18.45 percent

d. 20.50 percent

e. 22.75 percent

Reference no: EM131141977

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