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ABC Inc. is expected to pay an annual dividend of R0.80 a share next year. The market price of the share is R22.40 and the

ABC Inc. is expected to pay an annual dividend of R0.80 a share next year. The market price of the share is R22.40 and the growth rate is 5%. What is the firm's cost of equity?

7.6%

7.9%

8.2%

8.6%

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