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    Business
  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 9: The Cost of Capital
  5. Question
    The Cost of Equity for Tangshan Mining Would Be 18
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The Cost of Equity for Tangshan Mining Would Be 18

Question 2

Question 2

True/False

The cost of equity for Tangshan Mining would be 18.00 percent if the expected return on U.S. Treasury Bills is 5.00 percent, the market risk premium is 10.00 percent, and the firm's beta is 1.3.

Correct Answer:

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