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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 5.6% 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 5.6% and the expected market return is 12.1%, what is the cost of equity for Stan if the beta of the stock is a. 0.67? b. 0.86? c. 1.06? d. 1.26?

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