Annual dividend-what is the cost of equity

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Southern Home Cookin' just paid its annual dividend of $0.65 a share. Dividends are expected to grow at 6% forever. The stock has a market price of $13 and a beta of 1.12. The return on the U.S. Treasury bill is 2.5 percent and the market risk premium is 5 percent. What is the cost of equity?

Reference no: EM131179130

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