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A recent startup technology company that has a very low market cap is looking to calculate the return required by share holders using the build-up...

A recent startup technology company that has a very low market cap is looking to calculate the return required by share holders using the build-up method. Historically, long-term government bonds have been 4.8%, and the equity risk premium is approximately 6%. The startup premium and the micro-cap premium are both 5%.

What is the return required by share holders?

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Answer 20.8% 15.8% 10.8% 6.0%

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