The common stock of Modern Interiors has a beta of 1.61 and a standard

| February 25, 2017

Question
The common stock of Modern Interiors has a beta of 1.61 and a standard deviation of 27.4 percent. The market rate of return is 13.2 percent and the risk-free rate is 4.8 percent. What is the cost of equity for this firm?

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