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What is the company us cost of equity

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Assume that you are trying to estimate the cost of equity for an average risk (beta =1) Mexican company in US dollars. The US treasury bond rate is 2.2% and the company gets 60% of its revenues in the United States and 40% from Mexico. The equity risk premium for Mexico is 7.5% and the equity risk premium for the US is 5.5%. What is the company's US $ cost of equity?

Reference no: EM133117338

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