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Treasury Bills Are Currently Yielding 3%, the Expected Market Return

Question 30

Multiple Choice

Treasury bills are currently yielding 3%, the expected market return is 15%, the bank rate is 4%, and the firm's beta is 0.9. Calculate the cost of capital for this firm.


A) 13.8%
B) 13.9%
C) 13.6%
D) 12%

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