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RKKL is considering buying a company that has no leverage but an asset beta of 0.7. The market risk premium is 6% and the risk-free

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RKKL is considering buying a company that has no leverage but an asset beta of 0.7. The market risk premium is 6% and the risk-free rate is 1%. If they plan to use 34% debt, what will the required rate of return be? The required rate of return will be 3.16%. The required rate of return will be 7.42%. The required rate of return will be 7.36%. The required rate of return will be 5.20%

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