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An entity has declared a dividend of $0.

An entity has declared a dividend of $0.12 a share. The cum dividend market price of one equity share is $1.40.

Assuming a dividend growth rate of 7% a year, what is the entity's cost of equity?

A.

17.0%

B.

8.6%

C.

16.2%

D.

9.4%

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