Pears Corp. is trying to estimate its cost of equity capital. The firm believes its beta is 1.20. The current risk free rate in the economy is 1.50%, while the market portfolio risk premium is 6%. What is an estimate for the required rate to hold common equity? Pears Corp. is trying to estimate its cost of equity capital. The firm believes its beta is 1.20. The current risk free rate in the economy is 1.50%, while the market portfolio risk premium is 6%. What is an estimate for the required rate to hold common equity? 6.00% 7.20% 5.70% None of the answers are correct. 8.70%