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You have risen through the ranks of a coffee company, from the green-apron barista to the coveted black apron, and all the way to CFO.

You have risen through the ranks of a coffee company, from the green-apron barista to the coveted black apron, and all the way to CFO. A quick internet check shows that your companys beta is 0.5. The risk-free rate is 6.6% and you believe the market risk premium to be 4.9%. What is your best estimate of investors expected return on your companys stock (its cost of equity capital)?

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