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14. GMM Inc. has a beta of 1.2. The market risk premium is currently 7%, and the return on treasury bills is 4%. What is
14. GMM Inc. has a beta of 1.2. The market risk premium is currently 7%, and the return on treasury bills is 4%. What is the best estimate of GMMs cost of equity?
A. 13.70%
B. 10.20%
C. 14.00%
D. 8.31%
E. 12.40%
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