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Given the following information for a public company: Beta: 1 . 8 , Risk Free rate: 5 . 5 % , Equity risk premium: 3

Given the following information for a public company: Beta: 1.8, Risk Free rate: 5.5%, Equity risk premium: 3.5%. Calculate the companys cost of equity using the Capital Asset Pricing Model (CAPM) and the expected market return, respectively.
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a.10.4%,9.0%
b.12.8%,9.0%
c.11.8%,9.0%
d.10.4%,5.0%

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