Suppose the market value of a firms equity is worth 100m, Finance Basics

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Suppose the market value of a firms equity is worth 100m

Suppose the market value of a firm's equity is worth $100m and the market value of its debt is worth $50m. Also, assume equity beta and debt beta to be 1.2 and 0.3 respectively. Return on debt is 6%. If the market risk premium is 10% and the risk free rate is 3%, calculate: a) Expected return on equity

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Finance Basics: Suppose the market value of a firms equity is worth 100m

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