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Beta, Inc, maintains a debt-equity ratio of 0.78, has an equity cost of capital of 12%, and a debt cost of capital of 7%. Beta

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Beta, Inc, maintains a debt-equity ratio of 0.78, has an equity cost of capital of 12%, and a debt cost of capital of 7%. Beta Inc's corporate tax rate is 38%, and its equity market value is $170 million. If the firm's free cash flow is expected to be $11 million in one year and will grow at a constant growth rate forever, whaz constant expected future growth rate in dividends is consistent with the firm's current market value of the equity? 5.008% 4.112% 3.853% None of the above 3.769%

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