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Your company's stock sells for $40 per share, its last dividend (D0) was $2.00, and its growth rate is a constant 6percent. What is the

Your company's stock sells for $40 per share, its last dividend (D0) was $2.00, and its growth rate is a constant 6percent.

What is the firm's cost of equity?

5.00%

5.05%

10.00%

10.25%

none of the above

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