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Chapter 7. Ronald's Fast Food just paid their annual dividend of $1.05 a share. The stock has a beta of 5. The return on the

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Chapter 7. Ronald's Fast Food just paid their annual dividend of $1.05 a share. The stock has a beta of 5. The return on the U.S. Treasury bill (risk-free rate) is 8 percent and the expected return on the market is 15 percent. What is the cost of equity? 11.05% 11.50% 15.00% 32.00% 9.20%

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