Differences in the values of the betas of the two companies

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Reference no: EM131495898

i. Explain what the values of the betas (the slope coefficients in the regression) indicate and discuss the factors that might explain the differences in the values of the betas of the two companies.

ii. Comment on the implications of the estimated value of beta for investors and the cost of capital for the two companies

Reference no: EM131495898

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