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Martha's Interiors has a beta of 1.2. The market risk premium is 6 % and the risk-free rate of return is 4 %. By
Martha's Interiors has a beta of 1.2. The market risk premium is 6 % and the risk-free rate of return is 4 %. By how much will the cost of equity increase if the company completes an acquisition such that their company beta rises to 1.4? Multiple Choice O 0.12 % 1.20 % 2.47% 2.40% 0.24%
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The right option is b Explanation According to CAPM Cost of equity RF Market risk ...
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Introduction To Business Statistics
Authors: Ronald M. Weiers
7th Edition
978-0538452175, 538452196, 053845217X, 2900538452198, 978-1111524081
