Question: Threads Inc manufactures stylish clothing for teenagers The firm has
Threads Inc. manufactures stylish clothing for teenagers. The firm has a beta of 1.4 and earned a return on equity of 20% last year. However, a new financial crisis has just hit the stock market and Wall Street experts think the return on an average stock will be cut in half this year. The market has been producing equity returns of about 18% lately. Estimate this year’s return on an equity investment in Thread’s
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