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  3. Study Set
    Corporate Financial Management
  4. Exam
    Exam 8: The Capital Asset Pricing Model and Multi-Factor Models
  5. Question
    The Cost of Ordinary Equity for a Firm Would Be
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The Cost of Ordinary Equity for a Firm Would Be

Question 4

Question 4

True/False

The cost of ordinary equity for a firm would be 18% if the risk- free return is 5%, the market risk premium is 10%, and the firm's beta is 1.3.

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