The Nixon Corporation's common stock has a cost of capital of 12 percent. If the market risk premium is 8 percent and the expected market return is 10 percent. What is the company's equity beta? O A. 1.2 ОВ.1.25 O C.0.7 O D. 1

The Nixon Corporation's common stock has a cost of capital of 12 percent. If the market risk premium is 8 percent and the expected market return is 10 percent. What is the company's equity beta? O A. 1.2 ОВ.1.25 O C.0.7 O D. 1

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The Nixon Corporation's common stock has a cost of capital of 12 percent. If the market risk premium is 8 percent and the expected market return is 10 percent. What is the
company's equity beta?
O A. 1.2
В. 1.25
ОС. 0.7
O D. 1

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