1. Award: 12.50 points Problem 14-2 Calculating Cost of Equity (LO2) The Lenzie Corporation's common stock has a beta of 1.40. If the risk-free rate is 5.4% and the expected return on the market is 12%, what is the company's cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Cost of equity capital % References Worksheet Problem 14-2 Calculating Cost of Equity (LO2) Learning Objective: 14-02 How to determine a firm's cost of equity capital