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Suppose Firm FL just paid an annual dividend of $2 on its common stock. The firm increases its dividend by 5 percent annually. What is

Suppose Firm FL just paid an annual dividend of $2 on its common stock. The firm increases its dividend by 5 percent annually. What is the company's cost of equity if the current stock price is $30 per share?

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11.67%

12%

7%

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