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Calculate cost of equity capital

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Reference no: EM131968561

Question - Assume that a company has a beta of 0.78 and the risk-free rate is 5%. If the market risk premium is 7% calculate cost of equity capital, using the capital asset pricing model:

A. 10.5%

B. 5.3%

C. 11.2%

D. 6.0%

Reference no: EM131968561

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