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A firm is expected to pay a dividend of $3.50 per share in one year. The dividend is expected to grow at a constant rate

A firm is expected to pay a dividend of $3.50 per share in one year. The dividend is expected to grow at a constant rate of 7% forever. If the current market price for a share is $67, what is the cost of equity? Hint: P₀ = D₁/(R - g)

A. 7.00%
B. 12.22%
C. 14.00%
D. 15.64%

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