Equity risk premium

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Find the sources of the numbers entered in B15, B16, and B17 and list them.

HINT: Case Exhibit 4 lists, among other information, betas for three peers of Flash Memory.

B16 is assumed. Find the reference to the 'equity risk premium' (ERP) in the case then compare it to the 5% that the analyst plugged in B16. Why do you think they are different? Remember what you have learned earlier in the course about the historical range of ERP.

Reference no: EM133272638

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