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You are asked to estimate the cost of capital. Suppose you are given the following information on the company's stock: risk-free rate is 4.10%; market

You are asked to estimate the cost of capital. Suppose you are given the following information on the company's stock: risk-free rate is 4.10%; market risk premium is 5.25%; and beta is 1.30. Based on the CAPM approach, what is the cost of equity?

a. 10.93% b.9.97% c. 10.60% d.9.67% e. 10.28%

appreach what is the cost of eculy? 2. 1090% b. 0.07% c.1000s 8.967% e. 1020%

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