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Author Question: Benson's, Inc. has an overall cost of equity of 10.24 percent and a beta of 1.2. The firm is ... (Read 76 times)

itsmyluck

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Benson's, Inc. has an overall cost of equity of 10.24 percent and a beta of 1.2. The firm is financed 100 percent with common stock. The risk-free rate of return is 4 percent. What is an appropriate cost of capital for a division within the firm that has an estimated beta of 1.5?
◦ 11.6 percent
◦ 11.8 percent
◦ 12.0 percent
◦ 12.4 percent
◦ 12.8 percent


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Marked as best answer by itsmyluck on Apr 25, 2021

honnalora

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itsmyluck

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Reply 2 on: Apr 25, 2021
Wow, this really help


xiazhe

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Reply 3 on: Yesterday
Excellent

 

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