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Moerdyk Company's stock has a beta of 1 . 5 , the risk - free rate ( rRFR ) is 4 % , and the

Moerdyk Company's stock has a beta of

1.5,

the risk

-

free rate

(

rRFR

)

4 %,

and the market risk premium

(

-

rRFR

)

9 % .

What is the firm's required rate of return?

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