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Ted Corporation wants to estimate its cost of common equity using the Capital Asset Pricing Model. Assume the risk-free rate is 2.5%, the market risk

  1. Ted Corporation wants to estimate its cost of common equity using the Capital Asset Pricing Model. Assume the risk-free rate is 2.5%, the market risk premium is 6% and Ted Corporation has a Beta of .8. Using the capital asset pricing model, what is Ted's estimated cost of common equity?

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