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    Using the CAPM to calculate the cost of capital

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    7. Using the CAPM to calculate the cost of capital for a risky project assumes that:

    A. using the firm's beta is the same measure of risk as the project.
    B. the firm is all-equity financed.
    C. the financial risk is equal to business risk.
    D. Both A and B.
    E. Both A and C.

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    Using the CAPM to calculate the cost of capital for a risky project assumes that:

    A. using the firm's beta is the same ...

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