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The common stock of Paris Co. has a beta of 1.6. The market rate of return is 10 percent and the risk-free rate is 3

The common stock of Paris Co. has a beta of 1.6. The market rate of return is 10 percent and the risk-free rate is 3 percent. What is the cost of equity for the company?

A. 18.6 percent

B. 14.2 percent

C. 16.5 percent

D. 19.0 percent

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