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    Exam 11: Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach
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    Suppose a Firm Has a Market Beta of 1
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Suppose a Firm Has a Market Beta of 1

Question 27

Question 27

Essay

Suppose a firm has a market beta of 1.24 and the risk-free interest rate is 6.25.In addition,the excess return over the risk-free rate is 6.3%.Calculate the firm's cost of equity capital using the CAPM model.

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