Question: Show each step solved CAPITAL ASSET PRICING MODEL In the United States, the current market risk premium is 5%, and the risk-free rate (10-year treasury

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CAPITAL ASSET PRICING MODEL

In the United States, the current market risk premium is 5%, and the risk-free rate (10-year treasury bonds) is 45%. Coca Cola Company. has a beta value of 0.6, and PepsiCo Inc. a beta of 0.58 what is each company's cost of equity? Use the capital asset pricing model.

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