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The Copper Mountain company is evaluating a purchase of 'Neft, a small oil company in Russia, and trying to estimate Neft's cost of equity. The

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

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