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Calculate the cost of equity

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The expected return on the market is 13 percent, and Treasury bills are yielding 4.8 percent. The common stock of Trompeta Inc. has a beta of 1.30 and the dividends are expected to grow indefinitely at 4 percent annually. The most recent stock price for the company is $65.

Calculate the cost of equity. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM132288923

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