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The returns on the stock of the XYZ Company have a beta of 1.7. The risk-free rate is 3% and the market risk premium is

The returns on the stock of the XYZ Company have a beta of 1.7. The risk-free rate is 3% and the market risk premium is 4%. Assume that the CAPM holds.

What is the cost of equity for XYZ Company?

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