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Xoma Corporation (XOMA), a biotechnology firm, wants to estimate its cost of equity. Its bond yield to maturity is 5%. If inflation is 2% and
Xoma Corporation (XOMA), a biotechnology firm, wants to estimate its cost of equity. Its bond yield to maturity is 5%. If inflation is 2% and the equity market risk premium is 5%, what is an estimated cost of equity for XOMA?
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