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What is the capm for sunnyvale

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Reference no: EM133001093

SunnyVale Trailer Park has a free cash flow of $500 000. The company pays a 30% tax rate. Interest on debt, which accounts for 40% of its capital structure, is 6%. The beta for its common stock is 1.50. The risk free rate currently sits at 2% and the risk premium associated to this business, owing to residents, is 8%. What is the CAPM for Sunnyvale?

Reference no: EM133001093

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