Question: You know that the return of Smooth Operator Inc. ' s common shares are 0 . 6 times as sensitive to macroeconomic information as the

You know that the return of Smooth Operator Inc.'s common shares are 0.6 times as sensitive to macroeconomic information as the return of the market. If the risk-free rate of return is 1.90 percent and market risk premium is 6.45 percent, what is Smooth Operators cost of common equity capital?

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