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If investors have invested $20,000 of common equity in a company and it is determined that the required earnings of the company are $$1,250 each

If investors have invested $20,000 of common equity in a company and it is determined that the required earnings of the company are $$1,250 each period, then investors must expect to earn what return? a. the risk free rate b. 9% c. 6.25% d. the market premium

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