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Chelsea Fashions recently paid an annual dividend of $5 per share. The market price of the stock is $100 per share, and the growth rate

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Chelsea Fashions recently paid an annual dividend of $5 per share. The market price of the stock is $100 per share, and the growth rate of dividend is expected to be 6% for foreseeable future. What is the firm's cost of equity as per the constant growth dividend model (CGDM)? a. 8.58% b. 11% c. 11.30% d. 11.44%

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