A major electronic company imports various electronic equipment from Taiwan to the United States. The...
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Finance
A major electronic company imports various electronic equipment from Taiwan to the United States. The company has no debt and a beta coefficient of 1.65, according to the most recent Value Line report. What is the company's cost of capital (or required rate of return) assuming a risk-free rate of 5% and a market risk premium of 9.2%? Use CAPM/SML approach when solving this problem. Please show all work for credit.
Choose an answer below:
11.93%
20.18%
22.20%
12.24%
cannot determine without further information
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