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Suppose that in the coming year you expect exxon-mobil

Suppose that in the coming year, you expect Exxon-Mobil stock to have a volatility of 42% and a beta of 0.5, and Merck's stock to have a volatility of 24% and a beta of 1.2. The risk-free interest rate is 4% and the markets expected return is 12%.

The cost of capital for a project with the same beta as Exxon Mobil's stock is closest to:

A. 8.00%

B. 4.00%

C. 10.00%

D. 14.00%

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Finance Basics: Suppose that in the coming year you expect exxon-mobil

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Finance Basics: Suppose that in the coming year you expect exxon-mobil

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