According to Value Line, Bestway has a beta of 1.15.If 3-month Treasury bills currently yield 7.9 percent and the market risk premium is estimated to be 8.3 percent, what is Bestway's cost of equity capital?
A) 17.45%
B) 8.36%
C) 9.55%
D) 16.2%
Correct Answer:
Verified
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