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What is the cost of equity for a firm that has a beta of 0.98, a dividend growth rate of 3.2%, a stock price of
What is the cost of equity for a firm that has a beta of 0.98, a dividend growth rate of 3.2%, a stock price of $33/share, and an expected annual dividend of $1.06 per share next year? The market rate of return is 11.2% and the risk-free rate is 3.7%.
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