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. IBM expects to pay a dividend of $5 next year and expects these dividends to grow at 7% a year. The price of IBM

. IBM expects to pay a dividend of $5 next year and expects these dividends to grow at 7% a year. The price of IBM is $90 per share. What is IBM's cost of equity capital? (2 points)

A) 3.77%

B) 5.02%

C) 7%

D) 12.56%

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