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Cost Equity multiple choice

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Obi-Wan's common stock has a beta of 1.4. If the risk-free rate is 3 percent and the market risk premium is 15 percent, what is Obi-Wan's cost of equity?
a. 16.80%.
b. 19.80%.
c. 21.00%.
d. 24.00%.

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Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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