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Leo Corp wishes to determine its cost of common stock equity, r s . The market price, P o , of its common stock is
Leo Corp wishes to determine its cost of common stock equity, rs. The market price, Po, of its common stock is $80 per share. The firm expects to pay a dividend, D1 of $2 at the end of the year. The annual dividend growth rate, g, is 8%. Calculate rs.
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