According to CAPM Approach,
Cost of equity = Rf + beta(Rm-Rf)
Rf = 5.1%, Rm = 13%, beta = 1.1
Cost of equity = Rf + beta(Rm-Rf) = 5.1% + 1.1(13%-5.1%) = 13.79%
Answer : 13.79% (Thumbs up please)
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