What is the cost of equity

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Question

The beta value of Solica Inc. is 0.8. A 3-month T-yield bill's is 2.7%, whereas a 10-year T-yield bond's is 5%. The return on an average stock in the market last year was 12%, while the market risk premium is 4.6%. What is the cost of equity (in percent)?

Reference no: EM133578604

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