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Intro The risk-free rate is 1.5% and the required return for the market is 4%. Firm Beta Firm 1 1.3 1.2 Firm 2 Firm 3

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Intro The risk-free rate is 1.5% and the required return for the market is 4%. Firm Beta Firm 1 1.3 1.2 Firm 2 Firm 3 0.3 Assume that we estimate the cost of equity from retained earnings using the CAPM approach. 18 | Attempt 1/3 for 10 pts. Part 1 What is the cost of equity from retained earnings for Firm 1? 4+ decimals Submit 18 - Attempt 1/3 for 10 pts. Part 2 What is the cost of equity from retained earnings for Firm 2? 4+ decimals Submit Part 3 IB | Attempt 1/3 for 10 pts. What is the cost of equity from retained earnings for Firm 3? 4+ decimals Submit

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