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Luba Ltd is a small company being acquired by Mbali Holdings. The information provided is as: Treasury Bills rate is 5%, risk premium above the

Luba Ltd is a small company being acquired by Mbali Holdings. The information provided is as: Treasury Bills rate is 5%, risk premium above the Treasury Bills rate of 7%, beta of 1.2, and a small cap premium of 5%. Calculate the adjusted cost of equity.

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