Diddy Corp stock has a beta of 1.2, the current risk-free rate is 5 percent, and the expected return on the market is 13.5 percent. What is Diddy’s cost of equity?

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Diddy Corp stock has a beta of 1.2, the current risk-free rate is 5 percent, and the expected return on the market is 13.5 percent.  What is Diddy’s cost of equity?

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