(Computing the cost of common equity) (Related to Checkpoint 14.2 on page 490) The common stock for...

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(Computing the cost of common equity) (Related to Checkpoint 14.2 on page 490)

The common stock for Oxford, Inc., is currently selling for $22.50, and the firm paid a dividend last year of $1.80. The dividends and earnings per share are projected to have an annual growth rate of 4 percent into the foreseeable future. What is the cost of common equity for Oxford?

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