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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 6.2%
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 6.2% and the expected market return is 15.2%, what is the cost of equity for Stan if the beta of the stock is
a. 0.73 ?
b. 0.91 ?
c. 0.97?
d. 1.41?
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