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    Managerial Economics in a Global Economy
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    Exam 15: Long-Run Investment Decisions: Capital Budgeting
  5. Question
    What Is the Cost of Capital If the Average Return
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What Is the Cost of Capital If the Average Return

Question 71

Question 71

Essay

What is the cost of capital if the average return on the stock market is 12 percent, the firm's beta is 1.5 and the risk-free rate is 2 percent?

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