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What is the company cost of equity for abc stock

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Reference no: EM132909059

Problem 1: ABC stock has a beta that is 13 percent higher than the overall market beta. The risk-free rate is 3.1 percent, and the market rate of return is 10.6 percent. What is the company's cost of equity?

Multiple Choice

Option 1: 10.91%

Option 2: 15.48%

Option 3: 16.08%

Option 4: 11.58%

Option 5: 12.27%

Reference no: EM132909059

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