In the Data Case in Chapter 5, we suggested using the yield on Florida Sate bonds to

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In the Data Case in Chapter 5, we suggested using the yield on Florida Sate bonds to estimate the State of Florida’s cost of capital. Why might this estimate overstate the actual cost of capital?

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Corporate Finance

ISBN: 9780137845071

6th Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Jun 12, 2024 01:03 AM

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In the Data Case in Chapter 5, we suggested using the yield on Florida State bonds to estimate the State of Florida's cost of capital. Why might this estimate overstate the actual cost of capital?
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In the Data Case in Chapter 5, we suggested using the yield on Florida Sate bonds to

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Corporate Finance

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