What is the new equity cost of capital

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Reference no: EM131856113

You’ve been asked to re-evaluate an equity cost of capital calculation you recently turned into your boss. You previously assumed the risk-free rate was 3% and the beta of equity was 1.20. You found the cost of equity was 9.6%. Your boss has asked you to update the calculation with an assumed equity beta of 1.35. What is the new equity cost of capital? Please show the steps, and formula required to get the solution.

Reference no: EM131856113

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