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What is the average of the company cost of equity

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The expected market return is 12%, and T-bills are currently yielding 2%. Thompson transportation has a beta of 1.2. The company's next dividend is expected to be $2 per share, and dividends have been growing at an annual rate of 1.3%. If the stock sells for $25 per share, what is the average of the company's cost of equity?

Reference no: EM132386291

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