Biogen A Biotechnology Firm Had A Beta Of 1 70 In 1995 It Had No Debt Outstanding At 2840563

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Biogen, a biotechnology firm had a beta of 1.70 in 1995. It had no debt outstanding at the end of that year. Estimate the cost of equity for Biogen, if the treasury bond rate is 6.4%.What effect willl an increase in long-term bond rates to 7.5% have on Biogen’s cost of equity?How much of Biogen’s risk can be attributed to business risk?