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Amgen Inc. ( AMGN ) , a biotechnology firm, wants to estimate its cost of equity. Its bond yield to maturity is 4 % .

Amgen Inc. (AMGN), a biotechnology firm, wants to estimate its cost of equity. Its bond yield to maturity is 4%. If inflation is 3%
and the equity market risk premium is 5%, what is an estimated cost of equity for AMGN?
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