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A firm is expected to pay an annual dividend of $1.10 per share next year. The market price of the stock is $21.80 and the

A firm is expected to pay an annual dividend of $1.10 per share next year. The market price of the stock is $21.80 and the growth rate is 4.50%. What is the firm's cost of equity?

a. 9.24%

b. 10.54%

c. 9.77%

d. 9.55%

e. 7.91%

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