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If the current price of a stock is $88, dividend paid last on this stock was $3 and dividend is expected to grow at 2%

If the current price of a stock is $88, dividend paid last on this stock was $3 and dividend is expected to grow at 2% into perpetuity, what is the cost of equity for this company using the Gordon's constant dividend growth model?

Group of answer choices

6.025 %

8.76364 %

4.10795 %

5.47727 %

3.28636 %

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