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please help thank you 10 Assume that the risk-free rate of interest is 4% and the expected rate of return on the market is 13%.
please help thank you 10
Assume that the risk-free rate of interest is 4% and the expected rate of return on the market is 13%. I am buying a firm with an expected perpetual cash flow of $2,000 but am unsure of its risk. If I think the beta of the firm is 0.6 , when in fact the beta is really 1.2 , how much more will I offer for the firm than it is truly worth? (Do not round intermediate calculations. Round your answer to 2 decimal places.)Step by Step Solution
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