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You work for Dunder Mifflin, which has a beta of 1.2. The market return is expected to be 11%, and the risk-free rate is 3%.
You work for Dunder Mifflin, which has a beta of 1.2. The market return is expected to be 11%, and the risk-free rate is 3%. The Fed just announced a policy change that increased the risk-free rate to 4%. How did the increase in the risk free rate impact your company's cost of equity?
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