Cost of equity: SML. Stan is expanding his business and will sell common stock for the needed funds. If the current risk-free rate is 5.5% and the expected market return is 13.9%, what is the cost of equity for Stan if the beta of the stock is a. 0.78 ? b. 0.87 ? c. 0.97 ? d. 1.11? a. What is the cost of equity for Stan if the beta of the stock is 0.78? % (Round to two decimal places.)