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You know that the return of Sandhill Cyclicals common shares is 1.6 times as sensitive to macroeconomic information as the return of the market. If the risk-free rate of return is 4.10 percent and market
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You know that the return of Sandhill Cyclicals common shares is 1.6 times as sensitive to macroeconomic information as the return of the market. If the risk-free rate of return is 4.10 percent and market risk premium is 5.71 percent, what is Sandhill Cyclicals’ cost of common equity capital?

User Fracz
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Explanation

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You know that the return of Sandhill Cyclicals common shares is 1.6 times as sensitive-example-1
User Starteleport
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