Question: can anyone solve it pls The Abacus Computer Company has decided to use the Capital Asset Pricing Model to estimate its cost of equity. The

can anyone solve it pls

The Abacus Computer Company has decided to use the Capital Asset Pricing Model to estimate its cost of equity. The firm's beta was estimated at 1.4. The S&P/TSX Composite Index has returned 12.5% to investors over a fairly long period of time, and Abacus has decided to use this value as the market return. Treasury bills are currently providing investors with a 6.5% yield. Abacus's cost of equity (kj) using the CAPM is?

If its beta was incorrectly estimated, and a new revised estimate of 1.8 was used in the

calculations, what would its new estimate of the cost of equity be?

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