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Suppose your company has a stock beta of 0.58 and the current risk-free rate is 6.1% and the expected market return is 14.7%. What is

Suppose your company has a stock beta of 0.58 and the current risk-free rate is 6.1% and the expected market return is 14.7%.

What is the cost of your equity capital?

Select one: a. 11.1%. b. 10.4%. c. 12.0%. d. 11.9% e. 14.7%.

The correct answer is: 11.1%. How to get this answer?

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