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3. It is estimated that Lee Corp. has a stock volatility that is 25% greater than that of the market portfolio. The yield on 10-year

3. It is estimated that Lee Corp. has a stock volatility that is 25% greater than that of the market portfolio. The yield on 10-year Treasury bonds is 2.55%, and the expected market risk premium (MRP) is 5.25%. Based on this information, estimate Lees marginal cost of common equity.

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