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Consider a firm, which just paid a $0.50 dividend to common stockholders. If the firm estimates that thegrowth rate in dividends will be 5% and

Consider a firm, which just paid a $0.50 dividend to common stockholders. If the firm estimates that thegrowth rate in dividends will be 5% and the stock is currently selling for $10 per share.



What is the cost ofcommon stock for the firm?

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