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    Principles of Corporate Finance Study Set 4
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    Exam 9: The Cost of Capital
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    A Firm Has an Equity Beta of 1
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A Firm Has an Equity Beta of 1

Question 101

Question 101

True/False

A firm has an equity beta of 1.3. If the market risk premium is 6% and the long-term Government of Canada bond rate is 6%, the firm's cost of equity is 12%.

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