Question 8.A.7: Lansbury plc has recently obtained a measure of its beta fro...

Financial Management for Decision Makers

Lansbury plc has recently obtained a measure of its beta from a business information agency. The beta value obtained is 1.2. The expected returns to the market for the next period is 10 per cent and the risk-free rate on government securities is 3 per cent. What is the cost of ordinary shares to the business?

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