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Assume Company A ' s stock is currently selling for $ 1 6 . 2 5 a share and the most recent dividend was $

Assume Company A

'

s stock is currently selling for $

16.25

a share and the most recent dividend was $

1.34 .

You intend to continue a policy of increasing the dividend by

4 %

per year. What is the cost of Company A

'

s equity using this model?

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