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Duchess Corporation now wishes to calculate its cost of common stock equity, r _ s , by using the CAPM. The firm's investment advisors and
Duchess Corporation now wishes to calculate its cost of common stock equity, rs by using the CAPM. The firm's investment advisors and its own analysts indicate that the riskfree rate, RF equals ; the firm's beta, b equals ; and the market return, rm equals What is the firms cost of common equity according to the CAPM?
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