You know that the return of Wildhorse Cyclicals' common shares is 1.10 times as sensitive to macroeconomic information as the return of the market. If the risk-free rate of return is 4.60 percent today and market risk premium is 5.71 percent, what is Wildhorse Cyclicals' cost of common equity capital? (Round intermediate calculation to 4 decimal places, e.g. 1.25140 and final answer to 2 decimal places, e.g. 15.25%.) Cost of common equity capital %

You know that the return of Wildhorse Cyclicals' common shares is 1.10 times as sensitive to macroeconomic information as the return of the market. If the risk-free rate of return is 4.60 percent today and market risk premium is 5.71 percent, what is Wildhorse Cyclicals' cost of common equity capital? (Round intermediate calculation to 4 decimal places, e.g. 1.25140 and final answer to 2 decimal places, e.g. 15.25%.) Cost of common equity capital %

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 8P

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