Question

A fund manager gathers the following data to assess a stock's potential for a possible addition to
the portfolio
Company's net income
INR 20000000
Companies equity at the beginning
INR 140000000
Company's weighted average cost of capital
10.75%
Stocks Beta
1.80
Market risk premium
5.25%
Risk free rate
3.50%
Fund manager's required rate of return
13.60%
Using CAPM, the company's cost of equity is:
a. Cost of equity =10.75
b. Cost of equity =12.95
c. Cost of equity=13.60
d. Cost of equity =21.68​

Answer 1

Answer:

Nd in no nsndjdnd fidjdnd ndx kxxnoxnxjc