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You own a private company that is financed with 80% equity and 20% debt. Your evil twin runs a nearly identical company which is financed

You own a private company that is financed with 80% equity and 20% debt. Your evil twin runs a nearly identical company which is financed with 50% public equity and 50% debt. From stock returns, you calculate that the beta of the stock of the company run by your twin is 1.5. Estimate the return you should expect from your equity. Assume the tax rate is 35%, the risk free rate is 4%, and the market risk premium is 6%.

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