Company Cost of Capital
w A company’s cost of capital can be compared
to the CAPM required return.
Required
return
1.26 Project Beta
Company Costof Capital
13
5.5
0
SML
Company Cost of Capital
w A company’s cost of capital can be compared
to the CAPM required return.
Required
return
1.26 Project Beta
Company Costof Capital
13
5.5
0
SML