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You have been hired as a consultant by Feludi Inc's CFO, who wants you to help her estimate the cost of capital. You have been

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You have been hired as a consultant by Feludi Inc's CFO, who wants you to help her estimate the cost of capital. You have been provided with the following data: risk free rate-4.10%; market risk premiusm-5.25%; and beta of the stock-1.1. Based on the CAPM approach, what is the cost of common equity? A) 10.93% B) 9.67% C) 9.88% D) 10.28%

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