The total market value of the common stock of the okenfenokee real estate company is $6 million, and the total value of its debt of $4 million. The treasurer estimates that the beta of the stock is currently 1.5 and the expected risk premium on the market is 10%. The Treasury bill rate is 8%
A. What is the beta of the company's existing portfolio of assets?
B. Estimate the company's cost of capital
C. Would you buy the company stock? Why? (short reason)

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      cost_of_capital.xlsx