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Solar Tech's stock has a beta of 1.45, the risk-free rate is 4%, and the expected market return is 11%. Calculate Solar Tech's cost of equity capital. A) 14.15% B) 12.35% C) 10.75% D) 14.85%

Solar Tech's stock has a beta of 1.45, the risk-free rate is 4%, and the expected market return is 11%. Calculate Solar Tech's cost of equity capital. A) 14.15% B) 12.35% C) 10.75% D) 14.85%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Solar Tech's stock has a beta of 1.45, the risk-free rate is 4%, and the expected market return is 11%. Calculate Solar Tech's cost of equity capital. A) 14.15% B) 12.35% C) 10.75% D) 14.85%
Transcribed Image Text:Solar Tech's stock has a beta of 1.45, the risk-free rate is 4%, and the expected market return is 11%. Calculate Solar Tech's cost of equity capital. A) 14.15% B) 12.35% C) 10.75% D) 14.85%
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