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Question 5: A recent Stern grad is trying to value a dollar store on Bleecker Street. She knows the US Treasury rate is 0.75% and
Question 5: A recent Stern grad is trying to value a dollar store on Bleecker Street. She knows the US Treasury rate is 0.75% and the market return is typically around 6%. For the first step of the valuation, what is the expected return for this firm? (Hint: you will need to assume a beta. Please justify your assumption given what you know about betas). Points: This question is worth 4 points
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