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Stan is expanding his business and will sell common stock for the needed funds. If the current risk-free rate is 5.2% and the expected market

Stan is expanding his business and will sell common stock for the needed funds. If the current risk-free rate is 5.2% and the expected market return is 11.9%, what is the cost of equity for Stan if the beta of the stock is

a. 0.57?

b. 0.89?

c. 1.09?

d. 1.34?

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