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Suppose Urbash Inc. established a subsidiary in China. The subsidiary is planning to issue shares in the Chinese primary capital market. Consider the following information

Suppose Urbash Inc. established a subsidiary in China. The subsidiary is planning to issue shares in the Chinese primary capital market. Consider the following information and calculate the cost of equity: rate of return on 10-year government bond 6% rate of return on corporate bonds 8% rate of return on the Shanghai Composite Index (SHCOMP) 10% beta of a similar stock 0.8 OB.76% O 9.8% - 9.2 % Ti At 30

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