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Cost of common equity financing using capm-sml formula

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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 1.45. Paul estimated that the market return is 6.30%. The current rate for 10-year Treasury Bonds is 3.18%. Calculate cost of common equity financing using CAPM - SML formula.

Round the answers to two decimal places in percentage form.

Reference no: EM132502642

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