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What Would Be the Cost of Retained Earnings Equity for Tangshan

Question 124

Multiple Choice

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


A) 11.5%
B) 18.0%
C) 10.0%
D) 19.5%

Correct Answer:

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