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Suppose the 10-year T-bond rate is 3%. The Market Risk Premium is 5%. The equity beta for the firm is 1.5. What is the cost
Suppose the 10-year T-bond rate is 3%. The Market Risk Premium is 5%. The equity beta for the firm is 1.5. What is the cost of equity using the Capital Asset Pricing Model (CAPM)?
a. | 7.5% | |
b. | 9.5% | |
c. | 10.5% |
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