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Your firm's stock is trading for a share price of $12.41. You expect it to pay a dividend of $1.70 exactly one year from now,
Your firm's stock is trading for a share price of $12.41. You expect it to pay a dividend of $1.70 exactly one year from now, and you expect future annual dividends to remain at this level indefinitely. According to this information, what is the best estimate of your firm's cost of equity? Enter your answer as a decimal and show four decimal places. That is, if your answer is 12.5%, enter .1250.
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