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Your Estimate of the Market Risk Premium Is 6

Question 30

Multiple Choice

Your estimate of the market risk premium is 6%.The risk-free rate of return is 4.5% and General Motors has a beta of 1.6.What is General Motors' cost of equity capital?


A) 14.1%
B) 13.5%
C) 13.9%
D) 14.4%
E) 14.8%

Correct Answer:

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