Find cost of common equity financing using capm-sml formula

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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 2.33. Paul estimated that the market return is 7.50%. The current rate for 10-year Treasury Bonds is 4.31%. Calculate cost of common equity financing using CAPM - SML formula.

Reference no: EM131796756

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