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Suppose that Xyler Inc.s beta is estimated to be 1.64. If the expected return on the market is 9% and the risk-free rate is 2%,

Suppose that Xyler Inc.s beta is estimated to be 1.64. If the expected return on the market is 9% and the risk-free rate is 2%, what is the closest estimate of the discount rate that Xyler should use for stock valuation?

13.5%

16.7%

9.5%

11.5%

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