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question 8 Your estimate of the market risk premium is 8%. The risk-free rate of return is 1.5% and the stock of Southwest Airlines (LUV)

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Your estimate of the market risk premium is 8%. The risk-free rate of return is 1.5% and the stock of Southwest Airlines (LUV) has a beta of 1.26. What is Southwe ' Airlines' cost of equity capital under these assumptions? 10.08% 10.76% 10.98% 9.69% 9.89% 11.58%

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