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4. Henessey Markets has a beta of 1.38, a stock price of $22, and recently paid an annual dividend of $0.64 a share. The dividend

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4. Henessey Markets has a beta of 1.38, a stock price of $22, and recently paid an annual dividend of $0.64 a share. The dividend growth rate is 3.5 percent. The market has a 10.6 percent of rate of return and a risk premium of 7.5 percent. What is the firm's cost of capital based on CAPM equation? *

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