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If a company has paid dividends in the last four years of 7.00, 1.00, 2.00, and 5.00 respectively and the next dividend will be 4.75.

If a company has paid dividends in the last four years of 7.00, 1.00, 2.00, and 5.00 respectively and the next dividend will be 4.75. The price of the stock is 80.00. The stock risk is equal to the overall market and the t-bill rate is 1.2% and the market risk rate is 8%, what is the cost of equity?

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