Re Cost of equity$=$ Re $=$ Rf $+\backslash$beta $\backslash$times $($Rm $-$ Rf$)$

Re is the cost of equity. Calculate using the formula.

Rf$=$ Risk$-$free rate of return $=3\mathrm{.}86$

$\backslash$beta $($beta$)=$ Systematic risk of the company's equity$=2\mathrm{.}31$

Rm$=$ Expected return on the market$=\mathrm{.}08$