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What is the estimated discount rate of ABC (assume beta=1.5)? Assume the market risk premium (E[rm]-rf) is 5% and assume the risk-free rate is 1%.
What is the estimated discount rate of ABC (assume beta=1.5)? Assume the market risk premium (E[rm]-rf) is 5% and assume the risk-free rate is 1%.
A. 9%
B. 4.5%
C. 6%
D. 8.5%
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
10th Edition
0030329922, 9780030329920
