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The shareholders of Yosemite Corporation require a rate of return of 16.2 percent. Yosemite Corp is financed 100 percent
Posted: Wed Jul 06, 2022 6:28 pm
by answerhappygod
- The Shareholders Of Yosemite Corporation Require A Rate Of Return Of 16 2 Percent Yosemite Corp Is Financed 100 Percent 1 (25.42 KiB) Viewed 42 times
The shareholders of Yosemite Corporation require a rate of return of 16.2 percent. Yosemite Corp is financed 100 percent with common stock. Its beta is 1.4. The risk-free rate of return is 3.5 percent. What is an appropriate cost of capital for a division within Yosemite assuming that the division has an estimated beta of 1? Round up your answer to two decimal places.