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1. What is the cost of equity for an airline with a stock price of $16 per share and an annual dividend of $1.25 per

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1. What is the cost of equity for an airline with a stock price of $16 per share and an annual dividend of $1.25 per share that is: a. not expected to grow? b. expected to grow at a constant rate based on its previous annual dividend, which was $1.10 per share? c. expected to grow at the above rate for the first three years, then 5 percent thereafter

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