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Bohannon Corporation’s common stock has a beta of 1.22. Assume the risk-free rate is 4.7 percent and the expected return on the market is 12.2 percentWhat is the company’s cost of equity capital
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Bohannon Corporation's common stock has a beta of 1.22. Assume the risk-free rate is 4. 7 percent and the expected return on the market is 12.2percent What is the cost of equity capital for the company? RE = 0.047+1. 22 (. 122- 0. 047 ) = 0.047+1. 22 (. 122- 0. 047 ) = 0.047+0.091=0.1385 = 13.85%
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