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The common stock of a European firm with cross-listing in the U.S has a world beta of 1. The risk-free rate is 4%, the world
The common stock of a European firm with cross-listing in the U.S has a world beta of 1. The risk-free rate is 4%, the world market risk premium is 7% and the firm is in the 30% tax bracket. Based on this information, calculate the cost of equity capital for the firm.
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