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Question 16 The common stock of a European firm with cross-listing in the U.S. has a world beta of 1.3. The risk-free rate is 2.9%,

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Question 16 The common stock of a European firm with cross-listing in the U.S. has a world beta of 1.3. The risk-free rate is 2.9%, the world market risk premium is 5%, and the firm is in the 32% tax bracket. Based on this information, calculate the cost of equity capital for the firm

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