Find what is the firm cost of equity

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Problem 1: National Home Rentals has a beta of 1.3, a stock price of $19, and recently paid an annual dividend of $0.94 a share. The dividend growth rate is 4.5%. The market has a 10.6% rate of return and a risk premium of 7.5%. What is the firm's cost of equity?

Reference no: EM132623639

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