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(3) Company BW has 5,0000 shares outstanding and the market price is $23 per share. People believe this company is twice as risky as the

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(3) Company BW has 5,0000 shares outstanding and the market price is $23 per share. People believe this company is twice as risky as the stock market. Current T-bill rate is 3% and expected stock market return this year is 9%. What is BW's annual cost of equity? [15 points]

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