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If a firms beta is 1.5, the risk-free return is 3%, and the expected market risk premium is 6%, the firms cost of equity capital

If a firms beta is 1.5, the risk-free return is 3%, and the expected market risk premium is 6%, the firms cost of equity capital is

a.

7.5%

b.

9%

c.

None of the answers is correct.

d.

10%

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