The risk-free rate is 31 percent and the market rate of


ABC stock has a beta that is 13 percent higher than the overall market beta. The risk-free rate is 3.1 percent, and the market rate of return is 10.6 percent. What is the company's cost of equity?

a.) 15.48%

b.) 16.08%

c.) 10.91%

d.) 12.27% 

e.) 11.58%

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Finance Basics: The risk-free rate is 31 percent and the market rate of
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