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KALM Corporation has its common stock selling for $45/ share and the current dividend (D0) is $2.00/ share. If dividends are expected to grow at

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KALM Corporation has its common stock selling for $45/ share and the current dividend (D0) is $2.00/ share. If dividends are expected to grow at 7% per year for ever; then the firm's cost of retained earnings (equity) is: (approximately)

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