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A stock is expected to pay a dividend of $2.40 next year. The stock price is currently $80 and the dividend is expected to grow

A stock is expected to pay a dividend of $2.40 next year. The stock price is currently $80 and the dividend is expected to grow by 2% each year. What is the cost of common stock?

$0.03

$0.04

$0.05

$0.06

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