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Company Sunny May just paid out a dividend of 3 dollars. Bunny, the CEO of Sunny May is optimistic about the firm perspective: he expects

Company Sunny May just paid out a dividend of 3 dollars. Bunny, the CEO of Sunny May is optimistic about the firm perspective: he expects that the dividend will grow at 5% per year forever in the future. Sunny May is currently traded at 30 dollars/share. Answer the following questions:

a. What is Sunny Mays cost of equity capital?

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