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17. Tidewater Fishing has a current beta of 1.21. The expected market return is 12.3 percent and the risk-free rate of return is 3 percent.

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17. Tidewater Fishing has a current beta of 1.21. The expected market return is 12.3 percent and the risk-free rate of return is 3 percent. By how much will the cost of equity increase if the company expands its operations such that the company beta rises to 1.75? (2 points)

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