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How do calculate the cost of the common equity

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Reference no: EM133002008

Problem 1: Jones Jewelry wants to calculate the cost of its common equity. Assume that the expected return on a market portfolio is 15%, the? company's beta is 1.20, and the? risk-free rate is 4?%

a) 18.5%
b) 19.2%
c) 17.2%
d) 20.1%

Reference no: EM133002008

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