Question $3$

If you valued Large Oil, Inc. at $$50$ and the firm pays a $$4\mathrm{.}0$ annual dividend $($current

dividend$),$ which you expect to grow at $6\mathrm{.}0$ percent, what is the estimated cost of equity

$($required rate of return$)$ on your investment?

$14\mathrm{.}48\%$

$13\mathrm{.}53\%$

$16\mathrm{.}46\%$