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A biopharma company announced that the chance its laboratory experiment will producing a blockbuster drug just increased from 20% to 30% (and the chance it
A biopharma company announced that the chance its laboratory experiment will producing a blockbuster drug just increased from 20% to 30% (and the chance it fails went down from 80% to 70%). How will this new information affect the company's cost of capital? (assume the CAPM is how investors set the cost of capital).
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