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1. ABC Inc. just paid its first annual dividend of $3.17 a share. The firm plans to increase the dividend by 7.6 percent per year

1. ABC Inc. just paid its first annual dividend of $3.17 a share. The firm plans to increase the dividend by 7.6 percent per year indefinitely. What is the firms cost of equity if the current stock price is $49.5 a share? Enter your answer in percentages rounded off to two decimal points.

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