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onald's Fast Food just paid their annual dividend of $1.05 a share. The stock has a market price of $26 and a beta of 1.6.

onald's Fast Food just paid their annual dividend of $1.05 a share. The stock has a market price of $26 and a beta of 1.6. The return on the U.S. Treasury bill is 8 percent and the market risk premium is 15 percent. What is the cost of equity?

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