ABC stock has a beta that is 20 percent higher than the overall market beta.The risk-free rate is 2.7 percent and the market rate of return is 13.6 percent.What is the cost of equity?
A) 16.27%
B) 15.91%
C) 15.78%
D) 16.32%
E) 16.08%
Correct Answer:
Verified
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