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Martin Industries just paid an annual dividend of $1.40 a share. The market price of the stock is $42.10 and the growth rate is 7.0

Martin Industries just paid an annual dividend of $1.40 a share. The market price of the stock is $42.10 and the growth rate is 7.0 percent. What is the firm's cost of equity?

7.54 percent
10.56 percent
11.30 percent
14.78 percent
9.87 percent

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