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Your firm is planning to invest in a new power generation system. Galt Industries is an all equity form that specializes in the business. Suppose
Your firm is planning to invest in a new power generation system. Galt Industries is an all equity form that specializes in the business. Suppose Galts equity beta is .75, the risk-free rate is 3%, and the matket risk premium is 6%. If your firms project is all equity financed, then your estimate of your cost of capital is closest to:
a) 6% B) 90% C)46% D)7.50
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