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QUESTION
S Corporation's common stock has a beta of 1. The interest rate on 10 year U. Treasury bonds is 2.96 percent. Assuming an average market risk premium...
- S Corporation's common stock has a beta of 1.43. The interest rate on 10 year U.S. Treasury bonds is 2.96 percent. Assuming an average market risk premium of 5.0 percent, use the mean-variance capital asset pricing model to estimate the cost of existing common equity for S Corporation.
