=+The rate of return available by purchasing long-term government securities is cur- rently 6 per cent and
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=+The rate of return available by purchasing long-term government securities is cur-
rently 6 per cent and the average risk premium for shares over the risk-free rate has averaged 5 per cent. Petalt's shares have an above-average risk and its historic beta as measured by the co-movement of its shares and the market index correctly reflects the risk adjustment necessary to the average risk premium - this is 1.3.
Required Calculate the cost of bond finance.
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Corporate Financial Management And How To Write Essays And Assignments
ISBN: 978-1405882897
Coursepack Edition
Authors: Glen Arnold
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