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AEC Co. issues common stock that is expected to pay a quarterly dividend over the next year at $0.25 at a current price of $45
AEC Co. issues common stock that is expected to pay a quarterly dividend over the next year at $0.25 at a current price of $45 per share. If its WACC is 12% and the company is financed by 30% debt and 70% equity, calculate the expected growth of dividend (g), given the cost of debt is 6% and tax rate is 40%.
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