Business, 23.07.2021 03:10 garykids305
If a firm has a market beta of 0.9. is subject to an income tax rate of 35 percent, has a risk-free rate of 6 percent, a market risk premium of 7 percent, and has a market value of debt to market value of equity ratio of 60 percent, what does the market expect the firm to generate in terms of equity returns using CAPM?
a) 12.3%
b) 7%
c) 6%
d) 13%
Answers: 3
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If a firm has a market beta of 0.9. is subject to an income tax rate of 35 percent, has a risk-free...
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