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= Homework: Chapte... HW Score: 22.22%, 2 of 9 points O Points: 0 of 1 Save Cost of equity: SML. Stan is expanding his business
= Homework: Chapte... HW Score: 22.22%, 2 of 9 points O Points: 0 of 1 Save 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 5.2% and the expected market return is 11.4%, what is the cost of equity for Stan if the beta of the stock is a. 0.66? b. 0.92? c. 1.02? d. 1.32
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