The Talbot Corporations beta coefficient is estimated to be 1.40. Furthermore, the risk-free rate of interest is
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The Talbot Corporation’s beta coefficient is estimated to be 1.40. Furthermore, the risk-free rate of interest is currently 3.75 percent, and the expected rate of return on a diversified portfolio of all common stocks is 12 percent. Use the capital asset pricing model (CAPM) to estimate the cost of equity capital for Talbot.
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Related Book For 
Foundations Of Finance
ISBN: 9781292155135
9th Global Edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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