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Think Rs = Rf + Beta (Rm ? Rf). If the Return to common stock...

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Accounting

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Think Rs = Rf + Beta (Rm ? Rf). If the Return to common stock for Total Inc. (Rs) is 13.0%, the Beta for Total is 1.4 and Rf is 2.0%, What is the market return? If Beta is recalculated as 1.6 what is the new Return to Total? (C) What is the equity risk premium in B)? (D) Does an increasing beta change affect the equity risk premium? (E) What is the new return to Total if the Rf changes to 4.0% with a Beta of 1.6

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