Suppose that the British stock market is integrated with the rest of the world and Stansfield Company has made its shares tradable internationally via cross-listing on the NYSE. Using the CAPM and a risk-free rate of 5%, estimate the equity cost of capital for Stansfield. 
A) 12%
B) 10.60%
C) 6.60%
D) None of the above
Correct Answer:
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