If the risk-free rate is 35 percent and the expected return


Calculating Cost of Equity. The Up and Coming Corporation's common stock has a beta of 1.4. If the risk-free rate is 3.5 percent and the expected return on the market is 14 percent, what is the company's cost of equity capital? (Do not round your intermediate calculations.)

23.1%

18.93%

18.2%

19.11%

17.29%

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Financial Management: If the risk-free rate is 35 percent and the expected return
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