为什么计算不考虑rf

问题如下：

Using Approach 3, LED Light’s estimated required rate of return is closest to:

选项：

8.5%

10.5%

12.8%

解释：

B is correct. The required return for LED Light using Approach 3 (bond yield plus risk premium approach) is calculated as follows:

Required rate of return = Expected long-term yield + Equity risk premium

Required rate of return = 0.04 + 0.065 = 0.105 = 10.5%

A is incorrect because the risk-free rate is added to the equity risk premium.

The premium should be relative to the company’s long-term debt, not the risk free rate.

Required rate of return on share i = 0.02 + 0.065 = 0.085 = 8.5%

C is incorrect because the beta has been incorrectly multiplied by the equity risk premium before being added to LED Light’s long-term bond yield:

Required rate of return on share i = 0.04 + (1.35 × 0.065) = 0.12775 ≈ 12.8%