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ABC Corp has the stock beta of 0.85. If the risk-free rate is 3% and the market risk premium is 10%, what is the cost

ABC Corp has the stock beta of 0.85. If the risk-free rate is 3% and the market risk premium is 10%, what is the cost of equity in the company? I know the correct answer is NOT 8.95%.

5.95%

8.50%

8.95%

11.50%

3.00%

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