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CMC EXAMPLE: DIVIDEND GROWTH MODEL Suppose that your company is expected to pay a dividend of $1.50 per share next year. There has been a

CMC EXAMPLE: DIVIDEND GROWTH MODEL Suppose that your company is expected to pay a dividend of $1.50 per share next year. There has been a steady growth in dividends of 5.1% per year and the market expects that to continue. The current price is $25. What is the cost of equity? Gary McGud

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