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10- ABC Inc. common stock is currently selling for $61.25 per share. You expect the next dividend to be $5.30 per share. If the firm
10- ABC Inc. common stock is currently selling for $61.25 per share. You expect the next dividend to be $5.30 per share. If the firm has a dividend growth rate of 4% that is expected to remain constant indefinitely, what is the firm's cost of equity? A) 12.0% B) 12.3% C) 12.7% D) 13.0% E) 13.5%
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