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A company has just paid an annual dividend of $0.75 per share and has an expected dividend growth rate of 4.90%. The stock is currently

A company has just paid an annual dividend of $0.75 per share and has an expected dividend growth rate of 4.90%. The stock is currently selling for $26 a share. What is this firm's cost of equity?

A. 7.56%

B. 7.93%

C. 10.38%

D. 10.53%

E. 11.79%

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