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The Copper Mountain company is evaluating a purchase of Neft, a small oil company in Russia, and trying to estimate Nefts cost of equity. The
The Copper Mountain company is evaluating a purchase of Neft", a small oil company in Russia, and trying to estimate Nefts cost of equity.
The Copper Mountain companys analysts collect the following information:
risk free rate is 5%,
sovereign spread (risk premium) for Russia is 7%
Nefts beta is 1.5
equity market risk premium is 6.8%
What is Nefts cost of equity?
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