The common stock of Contemporary Interiors has a beta of 1.65 and a standard deviation of 27.4 percent.The market rate of return is 13.2 percent and the risk-free rate is 4.8 percent.What is the cost of equity for this firm?
A) 18.66 percent
B) 18.76 percent
C) 21.08 percent
D) 24.40 percent
E) 26.05 percent
Correct Answer:
Verified
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