Question 9.5: The risk-free rate of return, Krf, is 5.5%; the market yield...

Financial Analysis and Decision Making: Tools and Techniques to Solve Financial Problems and Make Effective Business Decisions

The risk-free rate of return, Krf, is 5.5%; the market yield, Km, is 15%; and the beta, B, for Alpha Company is 0.9. What is the cost of common equity using CAPM for the stock in question?

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