What is the required rate of return on the firm’s equity

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Reference no: EM131179147

Book and market value are equal. The firm’s Tax rate is 40%, Market Risk Premium is 7.5% and Risk Free Rate 2.9%. Asset beta = 1.1. The firm has $30 million of debt, 5% interest rate, and $50 million of equity. What is the required rate of return on the firm’s equity?

Reference no: EM131179147

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