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    Intermediate Financial Management
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    Exam 11: Determining the Cost of Capital
  5. Question
    Adams Inc Has the Following Data: RRF = 5
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Adams Inc Has the Following Data: RRF = 5

Question 92

Question 92

Multiple Choice

Adams Inc. has the following data: rRF = 5.00%; RPM = 6.00%; and b = 1.05. What is the firm's cost of common from reinvested earnings based on the CAPM?


A) 11.30%
B) 11.64%
C) 11.99%
D) 12.35%
E) 12.72%

Correct Answer:

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