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Scorecard Corp. is a 100% equity-financed company (no debt or preferred stock); hence, its WACC equals its cost of common equity. Scorecard Corp.’s retained earnings will be sufficient to fund its capital budget in the foreseeable future. The company has a beta of 1.20, the risk-free rate is 4.0%, and the market return is 5.2%. What is Scorecard Corp.’s cost of equity? O 15.08% O 6.29% O 5.44% O 1.49% Scorecard Corp. is financed exclusively using equity funding and has a cost of equity of 11.85%. It is considering the following projects for investment next year: Project Required Investment $8,750 w Expected Rate of Return 10.10% 13.65% ? $4,375 Y $2,150 14.60% Z $9,950 14.10% Each project has average risk, and Scorecard Corp. accepts any project whose expected rate of return exceeds its cost of capital. How large should next year’s capital budget be? O $16,475