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You know that the return of Momentum Cyclicals common shares is 1.7 times as sensitive to macroeconomic information as the return of the market. If the risk-free rate of return is 4.15 percent and market risk premium is 5.71 percent, what is Momentum Cyclicals’ cost of common equity capital? (Round intermediate calculation to 5 decimal places, e.g. 1.25140 and final answer to 2 decimal places, e.g. 15.25%.)

Cost of common equity capital

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Financial Management, Finance

Category:- Financial Management
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