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You are currently considering an investment in a project in the energy sector. The investment has the same riskiness as Exxon Mobil stock (ticker: XOM).

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You are currently considering an investment in a project in the energy sector. The investment has the same riskiness as Exxon Mobil stock (ticker: XOM). Using the data in Table 13.1 and the table calculate the cost of capital using the FFC factor specification if the current risk-free rate is 3.5% per year. The cost of capital using the FFC factor specification is %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) FFC Portfolio Average Monthly Returns, 1927-2018 Factor Portfolio Average Monthly Return (%) 95% Confidence Band (%) MKT- 0.63 +0.32 SMB 0.26 +0.19 HML 0.38 +0.21 PR1YR 0.64 +0.28 Print Done Help me solve this View an example Get more help Clear all Check answer You are currently considering an investment in a project in the energy sector. The investment has the same riskiness as Exxon Mobil stock (ticker: XOM). Using the data in Table 13.1 B and the table calculate the cost of capital using the FFC factor specification if the current risk-free rate is 3.5% per year. The cost of capital using the FFC factor specification is % (Round to two decimal places.) X Data table (Click on the following icon in order to copy contents into a spreadsheet.) Factor MKT SMB HML PR1YR Estimated Factor Betas, 2007-2017 MSFT XOM 1.10 0.69 -0.71 -0.41 -0.01 0.21 0.02 0.21 GE 1.22 -0.29 0.78 -0.22 Print Done Help me solve this View an example Get more help Clear all Check

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