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Business, 06.04.2020 23:32 lucifer6669

In December 2016, Boise Cascade's stock had a beta of 0.97. The Treasury bill rate at the time was 4.34% percent, and the Treasury bond rate was 7.59% percent. The firm had debt outstanding of 1.586 billion and a market value of equity of 2.616 billion; the corporate marginal tax rate was 36.00%. Use 8.00%as the market risk premium.
Which of the following accurately represents the expected return on the stock for a short-term and a long-term investor in the company?

a) 11.03% and 11.63%
b) 11.63% and 11.03%
c) 11.94% and 15.19%
d) 12.10% and 15.35%
e) 7.89% and 7.99%

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In December 2016, Boise Cascade's stock had a beta of 0.97. The Treasury bill rate at the time was 4...

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