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Question
Sonderson Corporation is undertaking a capital budgeting analysis. The firm's beta is 1.5. The rate on six-month T-bills is 5%, and the return on the S&P 500 index is 12%. What is the appropriate cost of common equity in determining the firm's cost of capital?A) 13.1%
B) 15.5%
C) 17.7%
D) 19.9%
Answer
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Related questions
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