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Potter Co. has a beta of 1.30 and an expected dividend growth rate of 5.00% per year. The T-bill rate is 6.00%. The annual return

Potter Co. has a beta of 1.30 and an expected dividend growth rate of 5.00% per year. The T-bill rate is 6.00%. The annual return on the stock market during the past three years was 15.00%. Investors expect the annual future stock market return to be 12.00%. Using the SML, what is ABCs required return? a. 12.8% b. 13.5% c. 13.8% d. 13.1%

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