The Hudson Corporation’s common stock has a beta of 1.3.

Excel File

The Hudson Corporation’s common stock has a beta of 1.3.
 If the risk-free rate is 5.3 percent and the expected return on the market is 11 percent, what is the company’s cost of equity capital?

Risk Free rate 0.053
Expected Return 0.11
Beta 1.3

Cost Equity Risk Free + Beta(Expected Return - Risk Free Rate)
Cost Equity 0.1271 =D5+(D7*(D6-D5))