Ran Company wants to determine its cost of common stock equity using the CAPM. The company's investment advisors indicate that the firm’s beta is equals to 1.3;the risk-free rate is 6%;  and the market return is 10%. (Do not round off between computations. Round off the final answer to two decimal places. Example of writing your answer 2.58%)

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A: The formula used is shown:

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Q: Everrest Inc.'s stock has a 46% chance of producing a 12.00% return, a 30% chance of producing a…

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