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QUESTION 15 If government bonds pay 8.5% interest and insured savings accounts pay 5.5% interest, stockholders in a moderately risky firm would expect return-on-equity values

QUESTION 15

"If government bonds pay 8.5% interest and insured savings accounts pay 5.5% interest, stockholders in a moderately risky firm would expect return-on-equity values of " a.5.50%

b.6.50%

c.12.00%

d."above 8.5%, but the exact amount is uncertain."

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