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Cash Hoarders Inc is an all equity firm. A firm has averaged about $2 billion in cash. The market value

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Cash Hoarders Inc is an all equity firm.  A firm has averaged about $2 billion in cash.  The market value of equity has averaged about $8 billion The firm has an equity beta of 1.  The risk-free rate = 3.2% and the market risk premium is 5%

What is the required return on Cash Hoarders OPERATING BUSINESS based on the CAPM model? Note:  The firm's equity value ($8 billion) derives from value of operations and value of cash holdings.

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Fundamentals of Corporate Finance

Fundamentals of Corporate Finance

ISBN: 978-0133400694

1st canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi

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Posted Date: September 25, 2023 00:57:50
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