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Assume that the parameters for the APM have been estimated and that there are three factors as follows: Risk Premium Beta Factor 1 4 .

Assume that the parameters for the APM have been estimated and that there are three factors as follows:
Risk Premium Beta
Factor 14.0%-1.2
Factor 24.0%0.9
Factor 31.5%1.1
If risk free rate is 7.5% p.a., Calculate cost of equity.

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