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Company ABC Corporation is operating on US market. Risk-free rate on US market is equal to 4%. Beta of company ABC is equal to 1.2.

Company ABC Corporation is operating on US market. Risk-free rate on US market is equal to 4%. Beta of company ABC is equal to 1.2. The estimate of risk-premium is equal to 6%.

Assuming that CAPM model holds, find return on equity for company ABC?

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