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Alabaster Incorporated has a beta of 1.05, a cost of debt of 8% and a debt to value ratio of.7. The current risk-free rate is

Alabaster Incorporated has a beta of 1.05, a cost of debt of 8% and a debt to value ratio of.7. The current risk-free rate is 3% and the market rate of return is 12.5%. What is the company's cost of equity capital?

Multiple Choice

12.97%

8.13%

16.13%

10.25%

13.13%

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