Your estimate of the market risk premium is 9%. The risk-free rate of return is 4.1% and General Motors has a beta of 1.8. What is General Motors' cost of equity capital?

A) 20.3%
B) 18.3%
C) 19.3%
D) 21.3%

Answer: A

Business

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In the sales comparison approach the MOST consideration would be given to:

A. Recently sold comparable properties. B. The capitalization rate. C. What the owner paid for the property. D. Gross rent multiplier.

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