What is the firm cost of equity for a company

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A company's stock price is $14, and the company recently paid an annual dividend of $1.13 a share. The dividend growth rate is 2.80% annually and constant forever. The company's stock has a beta of 0.80. The risk free rate is 1.90% and the risk premium is 7.20%.

Problem 1: What is the firm's cost of equity?

Reference no: EM132946180

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