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Business, 01.07.2021 18:30 orcawave9408

Wizard Co. currently has only a real estate division and uses only equity capital; however, it is considering creating consulting and distribution divisions. Its beta is currently 1.3. The risk-free rate is 4.2%, and the market risk premium is 6.4%. This means that the firm’s real estate division will have a cost of capital of:

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