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Pegasus Tours plans to pay a dividend of $2.10 next year, and they anticipate that dividend payments will grow by 3% every year for the
Pegasus Tours plans to pay a dividend of $2.10 next year, and they anticipate that dividend payments will grow by 3% every year for the foreseeable future. The market price of the stock is $31. The company's expected rate of return or cost of equity is closest to:
A. | 9.77%. | |
B. | 14.33%. | |
C. | 30.10%. |
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