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Old MathJax webview 3. Snapchat is considering entering the public market in the near future. Their current U.S. Treasury Bond yield is 4.2%, and their

Old MathJax webview

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3. Snapchat is considering entering the public market in the near future. Their current U.S. Treasury Bond yield is 4.2%, and their equity risk premium is 5.1%. Beta is mean reverting and raw beta is 1.2 Analysts estimate a marketability premium of 2.5%. Find the expected equity return for Snapchat using both the build-up method and the modified CAPM approach and find the specific company premium

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