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9. Suppose the risk free rate is 4.5% per year, and the market portfolio is expected to generate a return of 15% per year. Assuming

9. Suppose the risk free rate is 4.5% per year, and the market portfolio is expected to generate a return of 15% per year. Assuming the debt of all three firms is risk-free, work out the cost of capital for a zero-debt firm, given the following information on its peer group. [10 points]

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