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18. For the equity of Delaware East, Beta = 1.25. If the expected return on the market is 15% and the risk-free rate is 5%,

18. For the equity of Delaware East, Beta = 1.25. If the expected return on the market is 15% and the risk-free rate is 5%, what is the expected return on the firm's equity?

A.14.50%

B.15.00%

C.16.50%

D.18.75%

E.17.50%

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