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Hello, can I get a step by step solution using excel? Thank youThe Nixon Corporations common stock has a beta of 1.4. If the risk-free rate is 4.5 percent and the expected return on the m

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Answer #1

Ans 13.60%

Cost of Equity Capital = Risk free Return + (Market Return - Risk free return)* Beta
Cost of Equity Capital = 4.5% + (11% - 4.5%) * 1.4
Cost of Equity Capital = 13.60%
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