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Allison Engines Corporation has the following information: The current market price of the firms stock is P 0 = $28; its last dividend was D

Allison Engines Corporation has the following information: The current market price of the firms stock is P 0 = $28; its last dividend was D 0 = $2.20, and its expected dividend growth rate is 6 percent. What will Allisons marginal cost of equity be?

9.7%

13.9%

14.3%

15.8%

7.9%

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