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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 expected market return is 12.8%, what is the cost of equity for Stan if the beta of the stock is a. 0.62 ? b. 0.82 ? c. 1.02 ? d. 1.22

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