You have risen through the ranks of a coffee comany, from the lowly green-apron barista to the
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Question:
You have risen through the ranks of a coffee comany, from the lowly green-apron barista to the coveted black apron, and all the way to CFO. A quick internet check shows that your company's beta is 0.59. The risk-free rate is 5.1% and you believe the market risk premium to be 4.8%. What is your best estimate of investors' expected return on your company's stock (its cost of equity capital)?
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