What would be the cost of equity for firm xyz

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Problem 1: Continue considering Firm XYZ. Assume that the equity beta for Firm XYZ is 1.05. The Yield on 10-year treasuries is 2.5%, and that the market risk premium for the year is 12%. What would be the cost of equity for Firm XYZ? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05

Reference no: EM132620859

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