question archive Question 3 Paul Sharp is CFO of Fast Rocket Inc
Question 3 Paul Sharp is CFO of Fast Rocket Inc
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Question 3
Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing for his company. The stock has a beta of 1.18. Paul estimated that the market return is 6.35%. The current rate for 10-year Treasury Bonds is 2.99%. Calculate cost of common equity financing using CAPM - SML formula.
Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)
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