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Gaming Unlimited has a beta of 1.1. The yield on a 3-month T-bill is 3%, and the yield on a 10-year T-bond is 7.64%. The
Gaming Unlimited has a beta of 1.1. The yield on a 3-month T-bill is 3%, and the yield on a 10-year T-bond is 7.64%. The market risk premium is 5.8%, and the return on an average stock in the market last year was 15%. What is the estimated cost of common equity using the CAPM?
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