The cost of equity capital

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Reference no: EM13971869

Shelly's Inc. just paid an annual dividend of $1.63 per share. This dividend is expected to increase by 2.2 percent annually. Currently, the firm has a beta of 1.09 and a stock price of $27 a share. The risk-free rate is 4.7 percent and the market rate of return is 12 percent. What is the cost of equity capital (in percents) for Shelly's?

Reference no: EM13971869

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