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    Fundamental Principles of Finance
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    Exam 8: Capital Structure and the WACC
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    T-Notes Are Currently Paying 5
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T-Notes Are Currently Paying 5

Question 6

Question 6

Essay

T-notes are currently paying 5.5%, while the S&P 500 is paying 8%. Sentry Electronics has a beta of 1.5. What is the component cost of Sentry's retained earnings?

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