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7. Theta, Inc., an MNC, has a beta of 1.7. The U.S. stock market is expected to generate an annual return of 12 percent. Currently,

7. Theta, Inc., an MNC, has a beta of 1.7. The U.S. stock market is expected to generate an annual return of 12 percent. Currently, U.S. government bonds yield 2 percent. Based on this information, what is Thetas estimated cost of equity?

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