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Problem 11-1 Cost of Equity (LG11-3) Diddy Corp: stock has a beta of 1,2 , the current risk-free rate is 4 percent, and the expected

Problem 11-1 Cost of Equity (LG11-3) Diddy Corp: stock has a beta of 1,2 , the current risk-free rate is 4 percent, and the expected return on the market is 12.50 percent. What is Diddy's cost of equity? (Round your answer to 2 decimal places.)

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