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A week ago
Your estimate of the market risk premium is 7%.  The risk-free rate of return is 4% and General Motors has a beta of 1.5.  What is General Motors' cost of equity capital?

▸ 13.9%

▸ 14.8%

▸ 14.5%

▸ 13.5%
Textbook 
Fundamentals of Corporate Finance
Edition: 2nd
Authors:
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14.5%
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