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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,
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% | ||
12.5% | ||
15.5% | ||
10% |
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