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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 12.1%, what is the cost of equity for Stan if the beta of the stock is a. 0.58? b. 0.86? c. 1.02? d. 1.33
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