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Medical Supply Company has a beta of 1 . 5 5 and recently paid a common stock dividend of $ 3 . 4 7 .

Medical Supply Company has a beta of 1.55 and recently paid a common stock dividend of $3.47. If the return on Treasury securities is currently 7.5% and the return on the S&P 500 index is 12%, what is the required rate of return on the firm's common stock?
a)7.5%
c)18.5%
e)14.48%
b)26.1%
d)12.93%
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