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The Shrammer Company has a beta of 1.30, the current risk free rate is 4% and the average return on the stock market is 10%.

The Shrammer Company has a beta of 1.30, the current risk free rate is 4% and the average return on the

stock market is 10%. The required return on the firm's equity is:

A. 6.0%

B. 10.0%

C. 11.8%

D. 17.0%

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