Question $7(5$ points$)$

ABC just paid an annual divided of $$3\mathrm{.}35$ per share, with a plan to increase it by $2\%$

per year indefinitely.

What is ABC $\text{'}$s cost of equity if its current stock price is $$51\mathrm{.}90?$

$($Round your answer to the nearest hundredth; two decimal places$)$

Your Answer:

Answer