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Jerome Manufacturing has a beta of 1.42, a stock price of $40, and recently paid an annual dividend of $1.48 a share. The dividend growth

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Jerome Manufacturing has a beta of 1.42, a stock price of $40, and recently paid an annual dividend of $1.48 a share. The dividend growth rate is 3.2 percent. The market has a 12.4 percent rate of return and a risk premium of 10.6 percent. What is the firm's cost of equity? O 12.17% O 12.28% O 12.39% O 11.94%

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