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eBook Problem Walk-Through Cost of Equity: Dividend Growth Summerdahl Resort's common stock is currently trading at $37 a share. The stock is expected to pay

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eBook Problem Walk-Through Cost of Equity: Dividend Growth Summerdahl Resort's common stock is currently trading at $37 a share. The stock is expected to pay a dividend of $2.75 a share at the end of the year (D; - $2.75), and the dividend is expected to grow at a constant rate of 5% a year. What is the cost of common equity? Round your answer to two decimal places

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