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( Show your work step by step! You will get a score of zero if you fail to show your work.) ABC, Inc. has a

(Show your work step by step! You will get a score of zero if you fail to show your work.)

ABC, Inc. has a beta of 1.35. The market return is 7.2 percent, and the rate of T-bills is 3 percent. What is the company's cost of equity?

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