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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 5.4%,

image text in transcribed 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 5.4%, and the market risk premium is 7.7%, what is the cost of equity for Stan if the beta of the stock is 0.61 ? a. What is the cost of equity for Stan if the beta of the stock is 0.61 ? \% (Round to two decimal places.)

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