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Quiz: FiTtn Cuiz: C. U Student Life aul.. Saved 11 HWi Diddy Corp. stock has a beta of 1.2, the current risk-free rate is 4 p
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Answer #1

Using CAPM Model,

Cost of Equity = 0.04 + 1.20(0.1250 - 0.04)

Cost of Equity = 14.20%

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