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Suppose the stock of Stansfield Enterprises, a publisher of online presentations, has a beta of 1.5. The firm is 100 percent equity financed. Assume a

Suppose the stock of Stansfield Enterprises, a publisher of online presentations, has a beta of 1.5. The firm is 100 percent equity financed.

Assume a risk-free rate of 3 percent and a market risk premium of 7 percent.

What is the appropriate discount rate for an expansion of this firm?

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