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A stock has a beta of 1.5. The market risk premium is 8% and the risk-free rate is 4%. What is the cost of common

A stock has a beta of 1.5. The market risk premium is 8% and the risk-free rate is 4%. What is the cost of common stock?

a.

$0.08

b.

$0.04

c.

$0.10

d.

$0.14

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