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What is the cost of common stock (equity)? the beta of the common stock is 1.2 the market risk premium is 9.5 percent the risk-free

What is the cost of common stock (equity)?

  • the beta of the common stock is 1.2
  • the market risk premium is 9.5 percent
  • the risk-free rate is 5 percent
  • the common stock sells for $30 per share

cost of common stock(equity) =

13.70%

14.60%

15.50%

16.40%

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