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What is the firm cost of equity

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Question - The common stock of Detroit Engines has a beta of 1.34 and a standard deviation of 11.4 percent. The market rate of return is 11.5 percent and the risk-free rate is 4 percent. What is the firm's cost of equity?

a. 10.05 percent

b. 12.98 percent

c. 14.05 percent

d. 15.50 percent

e. 15.67 percent

Reference no: EM132596824

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