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The Alpha Co. has an overall cost of equity of 17% and a beta of 1.2. The firm is financed solely with common stock. The
The Alpha Co. has an overall cost of equity of 17% and a beta of 1.2. The firm is financed solely with common stock. The risk-free rate of return is 3.5%. What is an appropriate cost of capital for a division within the firm that has an estimated beta of 1.5
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