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Kirchner Exports Has a Beta of 1

Question 39

Multiple Choice

Kirchner Exports has a beta of 1.2. The risk free rate is 5% and the return on an average stock is 10.6%. Estimate Kirchner's cost of retained earnings.


A) 10.60%
B) 11.72%
C) 12.72%
D) 13.72%
E) 16.60%

Correct Answer:

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