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You are trying to calculate the cost of equity for a 5-year project at Boeing.You know that the stock's beta is 1.37and you estimate that
You are trying to calculate the cost of equity for a 5-year project at Boeing.You know that the stock's beta is 1.37and you estimate that the expected return on the market portfolio is 7%.You have collected the following information onthe yields of different Treasury securities.Based on the best practices for estimating the cost of equity, what would be the appropriate cost of equity to use for this project? Select one.
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