What are appropriate equity premium estimates

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Reference no: EM131235373

1. What are appropriate equity premium estimates? What are not? What kind of reasoning are you relying on?

2. What is today's risk-free rate for a 1-year project? For a 10-year project?

3. If you can use only one Treasury, which risk-free rate should you use for a project that will yield $5 million each year for 10 years?

Reference no: EM131235373

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