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CHS Inc. is expected to pay a dividend of $16 per share at the end of year 1(D1) and the dividends are expected to grow

CHS Inc. is expected to pay a dividend of $16 per share at the end of year 1(D1) and the dividends are expected to grow at a constant rate of 7% forever. If the current price of the stock is $83 per share, calculate the expected return and the cost of equity capital for the firm.

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