= Homework: Chapter 11 Homework HW Score: 0%, 0 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 4.2% and the expected market return is 12.4%, what is the cost of equity for Stan if the beta of the stock is a. 0.61? b. 0.81? c. 1.09? d. 1.12? a. What is the cost of equity for Stan if the beta of the stock is 0.61? % (Round to two decimal places.)