Tidewater fishing has a current beta of 148 the market risk, Ask an Expert

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Tidewater Fishing has a current beta of 1.48. The market risk premium is 8.9 percent and the risk-free rate of return is 3.2 percent. By how much will the cost of equity increase if the company expands its operations such that the company beta rises to 1.60? Answer A. 0.88% B. 1.07% C. 1.50% D. 2.10% E. 2.26%

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