The City Street Corporation's common stock has a beta of 1.2.The risk-free rate is 3.5 percent and the expected return on the market is 13 percent.What is the firm's cost of equity?
A) 11.4 percent
B) 12.8 percent
C) 14.9 percent
D) 17.6 percent
E) 19.1 percent
Correct Answer:
Verified
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