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EpiscoWhat EpiscoWhat
wrote...
Posts: 268
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6 years ago
The cost of capital for the oil refining division is closest to:
A) 6.5%
B) 7.0%
C) 8.5%
D) 10.0%
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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wrote...
6 years ago
C
Explanation:  C) ri = rrf + β(rm - rrf) = .03 + 1.1(.05) = .085 or 8.5%
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