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Galvestons beta is 12 the market risk premium is 40 and the

Use the bond-yield-plus-risk-premium method to estimate the cost of equity for Galveston Corp. A US Treasury bond yields 2.4%, the long-term bond for Galveston yields 4.4%, Galveston's beta is 1.2, the market risk premium is 4.0%, and the bond-yield-plus-risk-premium for Galveston is 3.0%. What is the required return for Galveston stock?

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Finance Basics: Galvestons beta is 12 the market risk premium is 40 and the

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