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Tele Ltd has a beta of 1.3 and is trying to calculate its cost of equity capital. If the risk-free rate of return is 3.5
Tele Ltd has a beta of 1.3 and is trying to calculate its cost of equity capital. If the risk-free rate of return is 3.5 percent and the market risk premium (market return minus risk-free rate) is 4 percent, then what is the company's expected cost of equity capital? A. 9.60% B. 7.20% C. 8.70% D. 10.14%
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