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Use the Following Information to Answer the Question(s)below

Question 97

Multiple Choice

Use the following information to answer the question(s) below. Use the following information to answer the question(s) below. The risk-free rate of interest is 3% and the market risk premium is 5%. -The cost of capital for the oil exploration division is closest to: A) 6.0%. B) 7.0%. C) 8.5%. D) 10.0%. The risk-free rate of interest is 3% and the market risk premium is 5%.
-The cost of capital for the oil exploration division is closest to:


A) 6.0%.
B) 7.0%.
C) 8.5%.
D) 10.0%.

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