The following financial information is available on Rawls Manufacturing Company: 
Rawls can issue new common stock to net the company $44 per share. Determine the cost of internal equity capital using the capital asset pricing model approach. (Compute answer to the nearest 0.1%) .
A) 12.9%
B) 12.6%
C) 13.0%
D) 11.8%
Correct Answer:
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