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6. A firm has an expected cash flow of $500m in one year. The beta of the common stock of the firm is 0.8 and

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6. A firm has an expected cash flow of $500m in one year. The beta of the common stock of the firm is 0.8 and this cash flow has the same risk as the firm as a whole. Using a risk-free rate of 6% and a risk premium on the market portfolio of 6%, what is the present value of the cash flow. If the beta of the firm doubles, what happens to the present value of the cash flow

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