Suppose the current long-term government bond yield

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Suppose the current long-term government bond yield is 2 percent and the estimated market risk premium is 5 percent. Fastest Company’s beta is estimated to be 1.15. Using CAPM, estimate Fastest Company’s cost of common equity.

Foerster, Stephen (2014-03-03). Financial Management: Concepts and Applications (Page 214). Prentice Hall.

Reference no: EM13873624

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