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Using the capital asset pricing model, and the information provided below, what is a good estimate for the cost of equity capital? YTM on five-year
Using the capital asset pricing model, and the information provided below, what is a good estimate for the cost of equity capital?
YTM on five-year US Treasury note = 0.030
Five-year average annual return on S&P 500 = 0.091
Percent of equity in company's long-term capital structure = 0.31
Your company's current stock beta = 0.89
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