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Use next year's Cash Flow Forecast for Blank Company to answer the following questions: Demand Cash Flow Weak $25,000 Expected $35,000 Strong $45,000 Suppose Blank
Use next year's Cash Flow Forecast for Blank Company to answer the following questions: Demand Cash Flow Weak $25,000 Expected $35,000 Strong $45,000 Suppose Blank Company has only one project, as forecast above, and an unlevered cost of equity of 8%. If the company uses no leverage, what is the expected return to equity holders? Select one: A. 8.0% B. 11.6% C. 30.0% D. 9.33%
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