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Our company has a beta of 2.0, a dividend growth rate of 5 percent for...

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Finance

Our company has a beta of 2.0, a dividend growth rate of 5 percent for the foreseeable future, a stock price of $150 per share, and an expected annual dividend of $6.00 per share next year. The expected market rate of return is 10 percent and the risk-free rate is 2.0 percent. What is the firm's average cost of equity?

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