Question: 24. Assuming the CAPM or one-factor model holds, what is the cost of equity for a firm if the firm's equity has a beta of

24. Assuming the CAPM or one-factor model holds, what is the cost of equity for a firm if the firm's equity has a beta of 1.2, the risk-free rate of return is 3%, the expected return on the market is 9%, and the return to the company's debt is 7%? 12 Points) 10.4% O 10.2% 13.89 14.4%

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