M12-15. Estimating Cost of Equity Capital Assume that a company’s market beta equals 0.6, the risk-free rate is 5%, and the market return equals 13%. Compute the company’s cost of equity capital....

M12-15. Estimating Cost of Equity Capital

Assume that a company’s market beta equals 0.6, the risk-free rate is 5%, and the market return equals 13%. Compute the company’s cost of equity capital.

Round answer to one decimal place (ex: 0.0245 = 2.5%)

Answer%