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Treasury bills currently have a return of 2.5% and the market risk premium is 7%. If a firm has a beta of 1.4, what is

Treasury bills currently have a return of 2.5% and the market risk premium is 7%. If a firm has a beta of 1.4, what is its cost of equity?

A. 8.8%

B. 9.5%

C. 10.5%

D. 12.3%

E. None of the above

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