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Posted on Jun 05, 2024

Breece and Co has a beta of 0.7. The yield on a 3-month T-bill is 3% and the yield on a 10-year T-bond is 7%.

The market risk premium is 5%, and the return on an average stock in the market last year was 12%. What is the estimated cost of common equity using the CAPM? Round to two decimal places.

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