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34 Cunningham Plastics Inc. common stock has a beta coefficient of 1.30. Assume the risk-free rate is 4% and the market risk premium is 6.0%.

34

Cunningham Plastics Inc. common stock has a beta coefficient of 1.30. Assume the risk-free rate is 4% and the market risk premium is 6.0%. What is the firm's cost of equity?

Select one:

a. 7.8%

b. 9.6%

c. 10.0%

d. 11.8%

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