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Your father is thinking of buying an annuity that pays $4175 at the end of each year for 3 years. He could earn 5.95%
Your father is thinking of buying an annuity that pays $4175 at the end of each year for 3 years. He could earn 5.95% on his money in other investments with equal risk. What is the most he should pay for this investment? O a. $11,466 b. $11.170. O c. $12.525. d. $11,047. O e. $12,305 Consider the following data: TRF 4.15%; RPM 5.35%; and b 1.10. Based on the CAPM approach, what is the cost of equity from retained earnings? a. 11.37% b.9.23% c. 7.25% d. 10.04% e. 8.70%
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