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A firm that is expected to pay a dividend of $5 at the end of this year has expected growth of 12%. The firm has

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A firm that is expected to pay a dividend of $5 at the end of this year has expected growth of 12%. The firm has a beta estimated at 1. If the S&P 500 is currently returning 14 while Treasury bonds are returning 3, what is the firm's after-tax cost of equity? Assume a tax rate of 40%

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