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Runtan Inc. has just paid an annual dividend of $0.45 per share. Analysts expect the firm's dividends to grow by 8% forever. Its stock price

Runtan Inc. has just paid an annual dividend of $0.45 per share. Analysts expect the firm's dividends to grow by 8% forever. Its stock price is $36.8 and its beta is 1.2. The risk-free rate is 2% and the expected return on the market portfolio is 8%.

What is the best guess for the cost of equity?

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