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7. In determining RE using the CAPM, what are the different approaches in determining the equity risk premium? What is the appropriate risk-free rate to
7. In determining RE using the CAPM, what are the different approaches in determining the equity risk premium? What is the appropriate risk-free rate to use? 8. Describe the process, step by step, of determining a bottom-up beta. 9. What are the determinants of the beta for a firm? 10. Define operating leverage and financial leverage. How do these types of leverage affect the profitability of the firm an shareholder risk. 11. Define enterprise value. What is the difference between enterprise value and firm value
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