AT&T Inc $20.60 Previous Close 20.66 Market Cap 147.475B Open 20.63 Beta (5Y Monthly) 0.69 Bid 20.58 x 21500 PE Ratio (TTM) 8.62 Ask 20.62 x 3200 EPS (TTM) 2.39 Day's Range 20.45 - 20.86 Earnings Date Jul 21, 2022 52 Week Rage 20.45 - 20.86 Forward Dividend & Yield 1.11 (5.34%) Volume 25,160,355 Ex-Dividend Rate Jul 08, 2022 Avg Volume 45,522,241 1y Target Est 23.31   1) Assuming the risk free rate is 3% and the market risk premium is 6%, what does the CAPm say the cost of equity is for AT&T?   Choose the closest.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
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AT&T Inc $20.60

Previous Close 20.66 Market Cap 147.475B
Open 20.63 Beta (5Y Monthly) 0.69
Bid 20.58 x 21500 PE Ratio (TTM) 8.62
Ask 20.62 x 3200 EPS (TTM) 2.39
Day's Range 20.45 - 20.86 Earnings Date Jul 21, 2022
52 Week Rage 20.45 - 20.86 Forward Dividend & Yield 1.11 (5.34%)
Volume 25,160,355 Ex-Dividend Rate Jul 08, 2022
Avg Volume 45,522,241 1y Target Est 23.31

 

1) Assuming the risk free rate is 3% and the market risk premium is 6%, what does the CAPm say the cost of equity is for AT&T?   Choose the closest.

a) 7.1%

b) 9.0%

c) 9.9%

d) 17.3%

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