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Business, 11.12.2019 19:31 jessnolonger

The stock is currently selling for $17.75 per share, and its noncallable $3,319.97 par value, 20-year, 1.70% bonds with semiannual payments are selling for $881.00. the beta is 1.29, the yield on a 6-month treasury bill is 3.50%, and the yield on a 20-year treasury bond is 5.50%. the required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. the firm's tax rate is 40%. refer to exhibit 10.1. based on the capm, what is the firm's cost of equity?

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The stock is currently selling for $17.75 per share, and its noncallable $3,319.97 par value, 20-yea...
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