Business
Business, 12.08.2020 04:01, ridzrana02

I am buying a firm with an expected perpetual cash flow of $700 but am unsure of its risk. If I think the beta of the firm is 0, when the beta is really 1, how much more will I offer for the firm than it is truly worth? Assume the risk-free rate is 7% and the expected rate of return on the market is 14%. (Input the amount as a positive value.)

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I am buying a firm with an expected perpetual cash flow of $700 but am unsure of its risk. If I thin...

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