What would be the cost of retained earnings equity for Tangshan Mining if the expected return on U.S. Treasury Bills is 5.00 percent, the market risk premium is 10.00 percent, and the firm’s beta is 1.3?
A. 11.5%
B. 18.0%
C. 10.0%
D. none of the above
Answer:B
What would be the cost of retained earnings equity for Tangshan Mining if the expected return on U.S. Treasury Bills is 5.00 percent, the market risk premium is 10.00 percent, and the firm’s beta is 1.3?
A. 11.5% B. 18.0% C. 10.0% D. none of the above