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GMAC, Inc. just paid an annual dividend of $1.50 a share. The market price of the stock is $32.50 and the growth rate of dividends

GMAC, Inc. just paid an annual dividend of $1.50 a share. The market price of the stock is $32.50 and the growth rate of dividends is 3%. What is the firm's cost of equity?

Group of answer choices

6.18%

8.17%

8.69%

7.75%

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