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A firm has a stock beta of 0.8. The risk free rate is 3% and...

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Question

Finance

A firm has a stock beta of 0.8. The risk free rate is 3% and the S&P500 (Market) return is 15%. What is the cost of equity for the company?

a.

11.4 percent.
b.

10.5 percent.
c.

15 percent.
d.

12.6 percent.

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