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An all-equity firm produced a dividend flow of $30,000 last year. The market value of the firm is $850,000 and the dividend is expected to

An all-equity firm produced a dividend flow of $30,000 last year. The market value of the firm is $850,000 and the dividend is expected to increase at 4% each year. What is the cost of equity capital for this firm? A. 7.67% B. 8.05% C. 9.2% D. 8.82%

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