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IBM just paid a dividend of 2.5% and expects these dividends to grow at 7% a year. The price of IBM is $80per share. What

IBM just paid a dividend of 2.5% and expects these dividends to grow at 7% a year. The price of IBM is $80per share. What is IBM's cost of equity capital?

1 A. 3.1 %

B. 7%

C. 9.83%

D. 10.34%

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