Compute the average of the companys cost of equity

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Reference no: EM131996493

Stock in Globex Corporation has a beta of 0.9. The expected market return is 12%, and T-bills are currently yielding 3.5%. The company's next dividend is expected to be $2 per share, and dividends have been growing at a 4% annual rate.

If the stock sells for $25 per share, what is the average of the company's cost of equity?

Reference no: EM131996493

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