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ABC Inc. has the following data: risk-free rate = 6.00%; market risk premium = 6.00%; and beta = 1.10. What is the firm's cost of
ABC Inc. has the following data: risk-free rate = 6.00%; market risk premium = 6.00%; and beta = 1.10. What is the firm's cost of equity based on the CAPM?
| 1. | 11.25% | |
| 2. | 11.83% | |
| 3. | 13.22% | |
| 4. | 12.60% | |
| 5. | 8.93% |
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Investments
Authors: Zvi Bodie, Alan J. Marcus, Alex Kane
6th Edition
0072861789, 9780072861785
