A relatively small medical group practice is trying to estimate its CCC. The practice is 100 percent equity financed. The rate of return on 20 -year Treasury bonds is currently 4 percent, and the expected rate of return on the market is 8 percent. A large practice management firm has a beta coefficient of 0.9 . Market research indicates that the cost of equity for very small firms is approximately 4 percentage points higher than the cost of equity for large firms. Moreover, the investors in the small group practice face liquidity risk and thus determine that a liquidity premium of 2 percentage points is appropriate. b. How would your estimate of the CCC change if the success of the medical group practice was highly dependent on the reputation of a single physician in the group? A relatively small medical group practice is trying to estimate its CCC. The practice is 100 percent equity financed. The rate of return on 20 -year Treasury bonds is currently 4 percent, and the expected rate of return on the market is 8 percent. A large practice management firm has a beta coefficient of 0.9 . Market research indicates that the cost of equity for very small firms is approximately 4 percentage points higher than the cost of equity for large firms. Moreover, the investors in the small group practice face liquidity risk and thus determine that a liquidity premium of 2 percentage points is appropriate. b. How would your estimate of the CCC change if the success of the medical group practice was highly dependent on the reputation of a single physician in the group