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KALM Corporation has its common stock selling for $53/share and the current dividend (D 0 ) is $2.50/share. If dividends are expected to grow at

KALM Corporation has its common stock selling for $53/share and the current dividend (D0) is $2.50/share. If dividends are expected to grow at 7% per year for ever; then the firm's cost of retained earnings (equity) is:

Question 16 options:

10.45%

11.55%

12.05%

11.72%

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