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The following information is available for a firm in a developing country: Risk-free rate = 2.0% Firm's equity beta = 1.5 Equity risk premium in

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The following information is available for a firm in a developing country: Risk-free rate = 2.0% Firm's equity beta = 1.5 Equity risk premium in the U.S. = 3.0% Developing country default spread = 4.0% The firm's cost of equity (in USD) using the CAPM approach, based on unadjusted beta, is closest to: Select one: O A. 6.5% OB. 8.0% O C. 10.5%

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