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Question 5 Sally Corp has an estimated beta of 1.7. The market risk premium (estimated excess market return) is 5%. The risk-free rate is 4%.

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Question 5 Sally Corp has an estimated beta of 1.7. The market risk premium (estimated excess market return) is 5%. The risk-free rate is 4%. Using the CAPM, what is an appropriate discount rate (r) on the equity of Sally corp? 9.5% 12.596 15.5% 10% 226P

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