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LexCorp has a beta of 0.75, a stock price of $42, and recently paid an annual dividend of $1.00 a share. The dividend growth rate

LexCorp has a beta of 0.75, a stock price of $42, and recently paid an annual dividend of $1.00 a share. The dividend growth rate is 5 percent. The market has a 14 percent rate of return and a risk premium of 11.40 percent. What is the firm's average cost of equity?

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