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Diddy Corp. stock has a beta of 1.3, the current risk-free rate is 5 percent, and the expected return on the market is 14.50 percent.

Diddy Corp. stock has a beta of 1.3, the current risk-free rate is 5 percent, and the expected return on the market is 14.50 percent. What is Diddy's cost of equity? (Round your answer to 2 decimal places.)

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