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ABC company has a beta of 0.90. The market risk premium is 7 percent, and T-bills are currently yielding 3.5 percent. ABC's most recent dividend

ABC company has a beta of 0.90. The market risk premium is 7 percent, and T-bills are currently yielding 3.5 percent. ABC's most recent dividend was $1.05 per share, and dividends are expected to grow at a 6.5 percent annual rate indefinitely. If the stock sells for $28 per share, what is your best estimate of ABC's cost of equity?

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