Determine the cost of equity capital for the firm

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Reference no: EM131590758

The Penn State Grand Valley common stock has a beta of 0.80. If the current risk-free rate is 6.5% and the expected return on the stock market as a whole is 14.62%, determine the cost of equity capital for the firm (using the CAPM).

14.1%

7.6%

6.5%

13.0%

Reference no: EM131590758

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