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The Up and Coming Corporation's common stock has a beta of 1.05. If the risk-free rate is 5.3 percent and the expected r...

The Up and Coming Corporation's common stock has a beta of 1.05. If the risk-free rate is 5.3 percent and the expected return on the market is 12 percent, Up and Coming's cost of equity is percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))
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Answer #1


Cost of equity = risk free rate + beta*(expected return on market - risk free rate)
= 5.3% + 1.05*(12% - 5.3%)
= 12.335%
= 12.34% (rounded to 2 decimals)

please rate my answer!
thanks in advance :)

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