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What is the appropriate cost of common equity

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Reference no: EM132203501

Snort and Smiley Incorporated is undertaking a capital budgeting analysis. The firm's beta is 1.5. The rate on six-month-T-bills is 5%, and the return on the S&P 500 index is 12%. What is the appropriate cost of common equity in determining the firm's cost of capital?

Reference no: EM132203501

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