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The common stock of Macy Pharmacy has a beta of 1.20. The risk-free rate is 5% and the market risk premium (market return - risk

The common stock of Macy Pharmacy has a beta of 1.20. The risk-free rate is 5% and the market risk premium (market return - risk free rate) is 6%. What is the cost of common stock?

7.0%
7.2%
11.0%
12.2%
12.4%

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