b. Because the company is smaller and more successful than average (with a low book-to-market ratio), the

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b. Because the company is smaller and more successful than average (with a low book-to-market ratio), the Fama-French three-factor model might be more appropriate. Given ci = 0.7, di = -0.3, an expected size factor value of 5%, and an expected book-to-market factor value of 4%, what is the required return using the Fama-French model?

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Financial Management Theory And Practice

ISBN: 9781439078105

13th Edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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