What is their expected required return of common equity

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Reference no: EM13875265

Oak Enterprises has a beta of 1.2, the market return is 8%, and the T-bill rate is 4%. What is their expected required return of common equity?

A. Between 11% and 12%

B. Between 8% and 9%

C. Between 7% and 8%

D. Between 4% and 5%

Please show formula used and breakdown how to solve the problem.

Reference no: EM13875265

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