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National Home Rentals has a beta of 1.24, a stock price of $22, and recently paid an annual dividend of $0.94 a share. The market

National Home Rentals has a beta of 1.24, a stock price of $22, and recently paid an annual dividend of $0.94 a share. The market has a 10.6 percent rate of return and a risk-free rate of 3.5 percent. What is the firm's cost of equity? Show your work

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