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Title: The Delta Co. owns retail stores that market home building supplies. Largo, Inc. builds single ... Post by: aemarmolejos on Apr 26, 2021 The Delta Co. owns retail stores that market home building supplies. Largo, Inc. builds single family homes in residential developments. Delta has a beta of 1.22 and Largo has a beta of 1.34. The risk-free rate of return is 4 percent and the market risk premium is 6.5 percent. What should Delta use as their cost of equity if they decide to purchase some land and create a new residential community?
▸ 11.93 percent ▸ 12.32 percent ▸ 12.43 percent ▸ 12.57 percent ▸ 12.71 percent Title: The Delta Co. owns retail stores that market home building supplies. Largo, Inc. builds single ... Post by: klyn on Apr 26, 2021 Content hidden
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