Question
Yamoah' Motors has a beta of 1.40, the T-bill rate is 3.00%, and the T-note rate is 7.0%. The annual return on the stock market
Yamoah' Motors has a beta of 1.40, the T-bill rate is 3.00%, and the T-note rate is 7.0%. The annual return on the stock market during the past 3 years was 15.00%, but investors expect the annual future stock market return to be 10.00%. Based on the SML, what is the firm's required return?
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
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