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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 28

Question 28

Essay

What is the cost of capital if the average return on the stock market is 8 percent, the firm's beta is 1.2 and the risk-free rate is 1 percent?

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