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Suppose Company B's common stock has a beta of 0.9. If the risk-free rate is 3 percent and the expected return on the market is

Suppose Company B's common stock has a beta of 0.9. If the risk-free rate is 3 percent and the expected return on the market is 12 percent, what is the companys cost of equity capital?

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8.1%

11.1%

13.8%

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