Ryerson Holding Corporation $($RYI$),$ a materials company, considers raising capital by issuing new equity. What is the firm's cost of

$($common$)$ equity if the stock beta is $1\mathrm{.}6?$ The T$-$bond rate is $5\%$ and the S&P $500$ return is $11\%.$

Cost of $($common$)$ equity $=$

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