Beau Markets has a beta of 1.12,a cost of debt of 8.6 percent,and a debt-to-value ratio of .6.The current risk-free rate is 3.22 percent and the market rate of return is 14.47 percent.What is the company's cost of equity capital?
A) 12.97 percent
B) 10.95 percent
C) 15.82 percent
D) 11.49 percent
E) 13.96 percent
Correct Answer:
Verified
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