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A firm has a stock beta of 1.3. The risk free rate is 2% and the S&P500 (Market) return is 10%. What is the cost

A firm has a stock beta of 1.3. The risk free rate is 2% and the S&P500 (Market) return is 10%. What is the cost of equity for the company?

a. 12 percent. b. 10.5 percent. c. 12.4 percent. d. 15 percent.

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