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Assuming the CAPM or One-Factor Model Holds, What Is the Cost

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Assuming the CAPM or one-factor model holds, what is the cost of equity for a firm if the firm's equity has a beta of 1.2, the risk-free rate of return is 2%, the expected return on the market is 9%, and the return to the company's debt is 7%?


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Documents that provide reasons and analysis to support particular decisions, actions, or recommendations.

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Evaluations or studies to assess the practicality and viability of a proposed project or idea.

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