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Southern Home Cookin' just paid its annual dividend of $.70 a share. The stock has a market price of $27 and a beta of 1.

Southern Home Cookin' just paid its annual dividend of $.70 a share. The stock has a market price of $27 and a beta of 1. The return on the U.S. Treasury bill is 3 percent and the market risk premium is 12 percent. What is the cost of equity?

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