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Estimating Cost of Equity Capital Assume that a companys market beta equals 0.8, the risk-free rate is 5%, and the market return equals 8%. Compute

Estimating Cost of Equity Capital

Assume that a companys market beta equals 0.8, the risk-free rate is 5%, and the market return equals 8%. Compute the companys cost of equity capital.

Round answer to one decimal place (ex: 0.0245 = 2.5%)

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