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DQuestion 29 2.5 pts The cost of equity for a firm is 20%. If the real interest rate is 5%, the inflation premium is 3%,
DQuestion 29 2.5 pts The cost of equity for a firm is 20%. If the real interest rate is 5%, the inflation premium is 3%, and the market risk premium is 2%, what is the investment risk premium for the frm? 10% 15% 13% 12% Question 30 2.5 pts Use the SML model to calculate the cost of equity for a firm based on the following information: the firm's beta is 1.5; the risk free rate is 5%; the market risk premium is 2%. 10.5% 4.5% 9.5% 8.0% Question 31 2.5 pts What proportion of a firm is equity financed if the WACC is 14%, the after-tax cost of debt is 7%, the tax rate is 35%, and the required return on equity is 18%? 70.26% 54.00% 63.64% 77 78%
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