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Problem 7 Intro The risk-free rate is 1.5% and the required return for the market is 4%. Beta 1.5 Firm Firm 1 Firm 2 Firm
Problem 7 Intro The risk-free rate is 1.5% and the required return for the market is 4%. Beta 1.5 Firm Firm 1 Firm 2 Firm 3 1.2 0.5 Assume that we estimate the cost of equity from retained earnings using the CAPM approach. Part 1 | Attempt 2/3 for 10 pts. What is the cost of equity from retained earnings for Firm 1? Part 2 Attempt 1/3 for 10 pts. What is the cost of equity from retained earnings for Firm 2? 4+ decimals Submit Part 3 Attempt 1/3 for 10 pts. What is the cost of equity from retained earnings for Firm 3
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