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Bill asks you to undertake securities valuation on Initech's stock, since he's looking forward to cashing...

Bill asks you to undertake securities valuation on Initech's stock, since he's looking forward to cashing in on his stock options. You find that Initech currently has a beta coefficient of 3.5, that the risk-free rate (the yield on T-bonds) is 3 percent, and that the market risk premium would be 5 percent. What would be the required rate of return on Initech’s stock?

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