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. Oliver's Fashions is expected to pay an annual dividend of $0.80 a share next year. The market price of the stock is $22.40, and

. Oliver's Fashions is expected to pay an annual dividend of $0.80 a share next year. The market price of the stock is $22.40, and the growth rate is 5 percent. What is the firm's cost of equity?

A. 7.58 percent B. 7.91 percent C. 8.24 percent D. 8.57 percent E. None of the above

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