What cost of capital would you recommend

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Reference no: EM131235450

A firm reported the following cash flows:

(Note that the cash flows are close to nothing in 2002 and even negative in 2004, the latter preventing you from computing percent changes in cash flows.)

Still assuming an equity premium of 4% and a risk-free rate of 3%, what cost of capital would you recommend for 1 year of this firm's cash flows?

Reference no: EM131235450

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