11.5. Assume the following: The risk free rate is 2.5% the

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11.5. Assume the following: The risk free rate is 2.5% the

11.5. Assume the following: The risk-free rate is 2.5%; the expected return on the market is 8% and this

firm’s stock is one and one-half times as risky as the market on average. What would be the cost of

equity for this firm?

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11.5. Assume the following: The risk free rate is 2.5% the