MPP Chips Ltd. has a beta of 0.80 and is trying to calculate its cost...
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MPP Chips Ltd. has a beta of 0.80 and is trying to calculate its cost of ordinary shares. The risk-free rate of return is 4 percent and the expected return on the market is 10 percent. The company is subject to a 30% tax rate. What is the company's cost of ordinary share capital?
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