ANT Corporation common stock has a beta, (β), of 1.5. The risk-free rate is 8%, and the market return is 12%. Determine the cost of equity shares using the CAPM.

CS Executive · Financial and Strategic Management · PYQS · December 2020
ANT Corporation common stock has a beta, (β), of 1.5. The risk-free rate is 8%, and the market return is 12%. Determine the cost of equity shares using the CAPM.
(A) 14%
(B) 11%
(C) 12%
(D) 13%

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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