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The common stock of Contemporary Interiors has a beta of 1.13 and a standard deviation of 21.40%. The market rate of return is 12.70% and
The common stock of Contemporary Interiors has a beta of 1.13 and a standard deviation of 21.40%. The market rate of return is 12.70% and the risk-free rate is 4.10%. What is the cost of equity for this firm?
a. 13.82%
b. 11.76%
c. 12.08%
d. 14.40%
e. 13.05%
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