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The cost of equity forRJ corporation is 8.4 percent and the debt equity ratio is .6. The expected return on the market is 10.4 percent

The cost of equity forRJ corporation is 8.4 percent and the debt equity ratio is .6. The expected return on the market is 10.4 percent and the risk-free rate 3.8 percent. using the common assumption for the debt beta, what is the asset beta?

a. .44

b. .62

c. .67

d. .59

e. .70

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