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Company A is a listed company with a beta of 1.31. It operates in a market with a risk-free rate of 2.5% and market risk

Company A is a listed company with a beta of 1.31. It operates in a market with a risk-free rate of 2.5% and market risk premium of 5.25% and a country risk premium of 0.9%. What is the cost of equity of Company A?

a) 9.4%.

b) 10.3%.

c) 9.8%.

d) 10.6%.

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