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the following information describes the equity position of a company 250,000 shares of common stock outstanding, selling at $81 per share Beta of 0.88 Market-risk

the following information describes the equity position of a company

  • 250,000 shares of common stock outstanding, selling at $81 per share

  • Beta of 0.88

  • Market-risk premium is 8 percent

  • Risk-free rate is 4.5 percent

The cost of equity for the company is:

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