These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.Cost of equity = Risk free rate + Beta * (Market return – Risk free rate) = 7% + 1.2 * (14% - 7%) = 15.4%
Market value of equity = 1 million * $12 = $ 12 million...
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