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How do you find the expected return on stock for a short term investor in the company given that beta= 0.95, the treasury bill rate=
How do you find the expected return on stock for a short term investor in the company given that beta= 0.95, the treasury bill rate= 5.8% now, the treasury bond rate=6.4%/ The firm also had debt outstanding at 1.7 million dollars, the market value of equity is 1.5 billion dollars and corporate marginal tax rate is 36%, given that the risk premium for T bills was 8.76% at time of assessment.
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