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Treasury bills currently have a return of 3% and the market risk premium is 8%. If a firm has a beta of 0.8 and a
Treasury bills currently have a return of 3% and the market risk premium is 8%. If a firm has a beta of 0.8 and a tax rate of 40%, its required rate of return on its equity is greater than _____ but less than or equal to ______. (Answer should be a percent)
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