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You have risen through the ranks of a coffee company, from the lowly green-apron barista to the coveted black apron, and all the way to CFO. A quick Internet check shows you that your company's beta is 0.6. The risk free rate is 5% and you believe the market risk premium to be 5.5%. What is your best estimate of investors' expected return on your company's stock (its cost of equity capital)?

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Basic Finance, Finance

Category:- Basic Finance
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