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Your company's stock sells for $40 per share, its last dividend (D0) was $2

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Your company's stock sells for $40 per share, its last dividend (D0) was $2.00, and its growth rate is a constant 6 percent. What is the firm's cost of equity?

F. 5.00%

G. 5.05%

H. 10.00%

I. 10.25%

J. none of the above