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Need help with this problem Cost of Equity: Dividend Growth Summerdahl Resort's common stock is currently trading at $21.00 a share. The stock is expected
Need help with this problem
Cost of Equity: Dividend Growth
Summerdahl Resort's common stock is currently trading at $21.00 a share. The stock is expected to pay a dividend of $1.50 a share at the end of the year (D1= $1.50), and the dividend is expected to grow at a constant rate of 6% a year. What is the cost of common equity? Round your answer to two decimal places.
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds
11th Edition
1305262999, 1305262997, 035726164X, 978-1305262997
