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Using the CAPM, what is the cost of common equity for the following: Beta = 1.34 Market risk premium is 9% Risk free rate is

  1. Using the CAPM, what is the cost of common equity for the following:

Beta = 1.34 Market risk premium is 9% Risk free rate is 5.5%

  1. 9%
  2. 13.69%
  3. 12.5%
  4. 11.42%

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