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Use the Table for the Question(s) Below

Question 30

Multiple Choice

Use the table for the question(s) below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
Use the table for the question(s)  below. Capital Structure and Unlevered Beta Estimates for Comparable Firms    -If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Oakley is closest to: A)  9.1% B)  10.2% C)  13.5% D)  14.7%
-If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Oakley is closest to:


A) 9.1%
B) 10.2%
C) 13.5%
D) 14.7%

Correct Answer:

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