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(Problem 1) (10 points) Find Cost of equity capital based on the following assumptions and use it for valuation in Problem 2. Show your work.

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(Problem 1) (10 points) Find Cost of equity capital based on the following assumptions and use it for valuation in Problem 2. Show your work. If not, no credit will be given. - Risk free rate =2.85% - Market risk premium =4.50% - Beta =0.70

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