Rainbow Mining Pty Ltd has a beta of $1\mathrm{.}20.$ The risk free rate is $4\%$ and the expected market return is $10\mathrm{.}5\%.$ The company's tax rate is $30\%.$ What is the company's cost of equity?

Question $28$Answer

a$.$

$6\mathrm{.}50\%$

b$.$

$11\mathrm{.}80\%$

c$.$

$8\mathrm{.}26\%$

d$.$

$16\mathrm{.}60\%$