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Assume that the risk - free rate of interest is 9 % and the expected rate of return on the market is 1 5 %
Assume that the riskfree rate of interest is and the expected rate of return on the market is I am buying a firm with an
expected perpetual cash flow of $ but am unsure of its risk. If I think the beta of the firm is when in fact the beta is really
how much more will I offer for the firm than it is truly worth? Do not round intermediate calculations. Round your answer to
decimal places. Omit the $ sign in your response.
Amount offered in excess
$
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