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A company will receive a nominal cash flow of $45 million five years from now. The company has a beta of 1.4. The current risk-free
A company will receive a nominal cash flow of $45 million five years from now. The company has a beta of 1.4. The current risk-free rate is 3% and the market risk premium is 7%. Compute the the certainty equivalent cash flow in year-5 and the deduction for risk.
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