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The risk free interest rate is 6% and the expected market return is 16%. Ignore taxes.

A) if company z has an asset beta of .6 what is the expected return on its assets?

B) If company z has only risk-free debt/equity ratio is 1/3, what is the expected return on its equity?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91614042

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