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Please use the Capital Asset Pricing Model to estimate the cost of equity. At the date of the case, the 74-year equity market risk premium

Please use the Capital Asset Pricing Model to estimate the cost of equity. At the date of the case, the 74-year equity market risk premium (EMRP) was estimated to be 8.4% over the 3-month t-bill rate and 6.4% over the 30-year t-bond rate. Which risk-premium and risk-free rate did you use? Why?

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