Calculate cost of common equity financing

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Reference no: EM132031082

Question: Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing for his company. The stock has a beta of 1.41. Paul estimated that the market return is 9.94% The current rate for 10-year Treasury Bond is 3.01 % Calculate cost of common equity financing using CAPM-SML formula.

Reference no: EM132031082

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