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Question 5 (3 points) The current risk-free rate of return is 3.8%. The market risk premium is 5.7%. Allen Co. has a beta of 1.56.

Question 5 (3 points) The current risk-free rate of return is 3.8%. The market risk premium is 5.7%. Allen Co. has a beta of 1.56. Using CAPM approach, Allen's cost of equity is 12.7% O 13.3% 14.0% 15.2%

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