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Q1. You are planning to start a trucking business with a fleet of high-efficiency electric vehicles. You believe your firm will face market risk similar

Q1. You are planning to start a trucking business with a fleet of high-efficiency electric vehicles. You believe your firm will face market risk similar to ABC Co. ABC's beta is 1.2. Estimate the cost of capital of this business opportunity assuming a market return of 6% and a risk-free rate of 3%.

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