Question: Assuming that the expected market return is 12% and the risk-free rate of return is 9%, the cost of equity of a company which is

Assuming that the expected market return is 12% and the risk-free rate of return is 9%, the cost of equity of a company which is 40% debt financed with a beta of 1.1 will be closest to:

Select one: a. 12.3% b. 13.92% c. 4.92% d. 7.38%

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