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Duchess Corporation wishes to determine its cost of common stock equity. The market price of its common stock is $60 per share. The firm expects

Duchess Corporation wishes to determine its cost of common stock equity. The market price of its common stock is $60 per share. The firm expects to pay a dividend, D1, of $3 with growth rate constantly at 4%. Calculate the cost of equity?

A. No answer

B. 9%

C. 19%

D. 13%

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