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Nifty Bikes is a publicly trading company that is trying to determine their cost of equity using the dividend discount model. Nifty Bikes just paid

Nifty Bikes is a publicly trading company that is trying to determine their cost of equity using the dividend discount model. Nifty Bikes just paid a dividend of $

1.12

per share. Historically, dividends have grown by about

3.6 %

per year. Nifty Bikes shares are currently trading for $

26.02

a share. What is Nifty Bikes' cost of equity?

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