Cost of Equity Calculation using CAPM

A company, XYZ Corp, is considering an expansion project that is expected to generate stable annual cash flows of $500,000 for the next 10 years. The company operates in a market with a beta of 1.5, a risk-free rate of 3%, and a market risk premium of 6%. Currently, XYZ Corp has a target capital structure of 60% equity and 40% debt. The cost of debt is 5% and the company faces a tax rate of 30%.

Based on the Capital Asset Pricing Model (CAPM), what is the company's cost of equity?