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Pierces enterprise stock is currently selling for $32.45, per share, and the firm expects its per share divident to be $1.38 in one year. Analysts
Pierces enterprise stock is currently selling for $32.45, per share, and the firm expects its per share divident to be $1.38 in one year. Analysts project the firms growth rate to be constant at 7.27%. Using the cost of equity using the discounted cashflow (or dividend growth) approach, what is Pierce's cost of internal equity? (option answers: 14.40%, 15.55%, 10.94%, 11.52%)
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