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Stock in CDB Industries has a beta of 1.07. The market risk premium is 7.2 percent, and T-bills are currently yielding 4.2 percent. CDBs most

Stock in CDB Industries has a beta of 1.07. The market risk premium is 7.2 percent, and T-bills are currently yielding 4.2 percent. CDBs most recent dividend was $3.10 per share, and dividends are expected to grow at an annual rate of 5.2 percent indefinitely.

If the stock sells for $53 per share, what is your best estimate of the company's cost of equity?

Cost of equity ______%

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