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1) Your company will pay a dividend at the end of this coming year of $3.50 per share, expecting growth in dividends of 4%. The

1) Your company will pay a dividend at the end of this coming year of $3.50 per share, expecting growth in dividends of 4%. The current stock price is $45 per share. What is the cost of equity?

a. 18.00%

b. 10.77%

c. 15.86%

d. 11.78%

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