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Smathers Corporation stock has a beta of 1 . 2 4 . The market risk premium is 6 . 9 0 percent and the risk

Smathers Corporation stock has a beta of 1.24. The market risk premium is 6.90 percent and the risk-free rate is 2.82 percent annually. What is the company's cost of equity?
A)9.63%
B)7.66%
C)11.38%
D)7.88%
E)7.44%
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