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(3) Company BW has 100,000 shares outstanding and the market price is $25 per share. People believe this company is 1.8 times as risky as

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(3) Company BW has 100,000 shares outstanding and the market price is $25 per share. People believe this company is 1.8 times as risky as the stock market. Current T-bill rate is 2.5% and expected annual market risk premium is 9.1%. What is BW's annual cost of equity? [5 points) 1

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