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CAPM / cost of common equity Q6 6. The historical beta for Lygre Books is 0.80. The yield to maturity (YTM) on government bonds (risk-free

CAPM / cost of common equity

6. The historical beta for Lygre Books is 0.80. The yield to maturity (YTM) on government bonds (risk-free asset) is 5% and the market risk premium (rmr1) is 7%. What is the estimated cost of common equity (rs) using the CAPM

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