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Your estimate of the market risk premium is 7%. The risk-free rate of return is 4% and General Motors has a beta of 1.6. What
Your estimate of the market risk premium is 7%. The risk-free rate of return is 4% and General Motors has a beta of 1.6. What is General Motors cost of equity capital?
A. 15.2%
B. 14.4%
C. 16.0%
D. 13.7%
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