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6. The common stock of Kansas City Power and Light has a beta of 0.80. The Treasury bill rate is 4 percent and the market

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6. The common stock of Kansas City Power and Light has a beta of 0.80. The Treasury bill rate is 4 percent and the market risk premium is 8 percent. KCP&L is in the 34% tax bracket. What is their cost of equity capital R ? Normally, Capital Assets Pricing Model (CAPM) is used to calculate the cost of equity "R" R = R,+B (RM-R,)

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