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A company wishes to determine its cost of common stock equity, rs. The market price, P0, of its common stock is $42.64 per share. The
A company wishes to determine its cost of common stock equity, rs. The market price, P0, of its common stock is $42.64 per share. The firm expects to pay a dividend, D1, of $4.20 at the end of the coming year, 2021. The dividends paid on the outstanding stock over the past 6 years (20152020) were as follows: 2015- 3.60 2016- 3.65 2017-3.70 2018-3.85 2019-4.00 2020-4.10 What is the cost of common stock equity financing?
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