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A company has a beta of 1.5. The current risk-free rate is 4%. Assuming a market risk premium of 9%, the companys current cost of

A company has a beta of 1.5. The current risk-free rate is 4%. Assuming a market risk premium of 9%, the companys current cost of equity based on the CAPM is closest to:

A) 9.5%

B) 14.5%

C) 15.5%

D) 19.5%

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