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Under the incorrect it says YTM on T-Bills Estimate an appropriate cost of capital benchmark for a short-term risky project based on the following data:
Under the "incorrect" it says "YTM on T-Bills"
Estimate an appropriate cost of capital benchmark for a short-term risky project based on the following data: Incorrect -bills =1.7% YTM on T-bonds =4.1% historical arithmetic equity premium over T-bills =8.9% historical arithmetic equity premium over T-bonds =7.7% historical geometric equity premium over T-bills =6.5% historical geometric equity premium over T-bonds =5.7% Give your answer in percentage to the nearest 0.1 percentage point. Selected Answer: f Correct Answer: 10.60.05Step by Step Solution
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