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E12.10 E12.10 Calculating the Cost of Equity. Assume that the Collins Company has a beta of 1.8 and that the risk-free rate of return is

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E12.10 Calculating the Cost of Equity. Assume that the Collins Company has a beta of 1.8 and that the risk-free rate of return is 2.5 percent. If the equity-risk premium is six percent, calculate the cost of equity for the Collins Company using the capital asset pricing model

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