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10. Penn Cable Corp just paid an annual dividend of $1.50 per share. This dividend is expected to increase by 2.5% annually. Currently, the company

10. Penn Cable Corp just paid an annual dividend of $1.50 per share. This dividend is expected to increase by 2.5% annually. Currently, the company has a beta of .85 and a stock price of $26 a share. The risk-free rate is 2.2% and the market rate of return is 11%. what is the cost of equity capital for this firm

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