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The firm's stock has beta b= 1.4. The expected market return is E(ru) = 10%. The risk-free rate r = 4%. Abracadabra's equity has a
The firm's stock has beta b= 1.4. The expected market return is E(ru) = 10%. The risk-free rate r = 4%. Abracadabra's equity has a market value E= USD10,000. Abracadabra's debt has a market value D = USD 15,000. Abracadabra can borrow new funds at a cost of r. = 6%. Abracadabra's corporate tax rate is T. = 40%. % What is the return on Equity Using the CAPM O O 12.4% O 12.12% O
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Smart Supply Chain Finance
Authors: Hua Song
1st Edition
9811659966, 978-9811659966
