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The Penn State Grand Valley common stock has a beta of 0.80. If the current risk-free rate is 6.5% and the expected return on the
The Penn State Grand Valley common stock has a beta of 0.80. If the current risk-free rate is 6.5% and the expected return on the stock market as a whole is 14.62%, determine the cost of equity capital for the firm (using the CAPM). (Points : 3) |
14.1% 7.6% 6.5% 13.0%
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