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The US Risk-Free Rate Is Currently 3

Question 54

Multiple Choice

The U.S. risk-free rate is currently 3%. The expected U.S. market return is 10%. Solso, Inc. is considering a project that has a beta of 1.2. What is the cost of dollar-denominated equity?


A) 8.4%
B) 11.4%
C) 10%
D) None of the above

Correct Answer:

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