CAPM and a risk-free rate of 5 percent, estimate the equity cost of capital for Stansfield.
A. 12 percent
B. 10.60 percent
C. 6.60 percent
D. None of the options
Answer:B
CAPM and a risk-free rate of 5 percent, estimate the equity cost of capital for Stansfield.
A. 12 percent B. 10.60 percent C. 6.60 percent D. None of the options
Explanation: It seems likely that Stansfield’s investors are globally diversified (as the British