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A company is planning to pay an annual dividend of $2.26 a share next year. The market price of the stock is $25 and the

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A company is planning to pay an annual dividend of $2.26 a share next year. The market price of the stock is $25 and the growth rate is 2.5 percent. What is the cost of equity in percentage terms? (DO NOT INCLUDE THE \% SYMBOL IN YOUR ANSWER; 1 or 2 decimal places)

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