Required rate of return by victoria stockholders


Southampton Publishing Corporation has tax rate of 40%, debt-to-equity ratio of 40%, and has (leveraged) beta of 1.25. The riskless rate is 9% and the market return is 16%. Victoria Publishing Company is an all equity company and is in the same business. What is the required rate of return by the Victoria stockholders?

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Finance Basics: Required rate of return by victoria stockholders
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