What is the cost of equity for stan

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Reference no: EM131962764

Question: Cost of equity: SML. Stan is expanding his business and will sell common stock for the needed funds. If the current risk-free rate is 6.3% and the expected market return is 12.3%, what is the cost of equity for Stan if the beta of the stock is below:

a. 0.78

b. 0.92

c. 0.98

d. 1.18

Reference no: EM131962764

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