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63 Chelsea Fashions is expected to pay an annual dividend of $1.40 a share next year. The market price of the stock is $26.00 and

63

Chelsea Fashions is expected to pay an annual dividend of $1.40 a share next year. The market price of the stock is $26.00 and the growth rate is 4 percent. What is the firm's cost of equity?

9.38 percent
9.26 percent
9.20 percent
9.43 percent
9.07 percent

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